BTCUSD pushes through key technical resistance level
Bitcoin/US Dollar Index (BTCUSD) Technical Analysis Report for Jul 01, 2020 | by Techniquant Editorial Team
BTCUSD finished Wednesday at 9238.89 gaining $102.42 (1.12%). Closing above Tuesday's high at 9200.99, the market confirmed its breakout through the prior session high after trading up to $98.68 above it intraday.
Daily Candlestick Chart (BTCUSD as at Jul 01, 2020):
Wednesday's trading range has been $202.34 (2.21%), that's slightly below the last trading month's daily average range of $264.05. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BTCUSD.
Notwithstanding a weak opening BTC managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 9234.33 (now S1), which is likely to act as support going forward. After having been unable to move lower than 9068.77 in the prior session, BTC/USD found buyers again around the same price level today at 9097.33. The last time this happened on June 26th, BTCUSD actually lost -1.64% on the following trading day.
While the cryptocurrency is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for BTC/USD. Out of 373 times, BTCUSD closed higher 56.84% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.91% with an average market move of 5.35%.
With five out of the other six Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 2.42% and LTCUSD closing 1.48% higher. On the flipside the worst performer has been ETCUSD closing -0.17% lower. Looking at the Minor Cryptocurrencies, the winners of the day have been ADAUSD surging 16.61% and ADABTC closing 15.18% higher. The worst performers of the day have been STRATBTC tanking -6.12% and STRATUSD closing -4.55% lower. Read more