BTCUSD finds buyers again around 9052.40
Bitcoin/US Dollar Index (BTCUSD) Technical Analysis Report for Jul 04, 2020 | by Techniquant Editorial Team
BTCUSD ended Saturday at 9142.20 gaining $75.74 (0.84%) on low volume. Closing above Friday's high at 9127.05, Bitcoin confirmed its breakout through the prior session high after trading up to $68.86 above it intraday.
Daily Candlestick Chart (BTCUSD as at Jul 04, 2020):
Saturday's trading range has been $143.51 (1.58%), that's below the last trading month's daily average range of $257.54. 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.
Regardless of a weak opening the cryptocurrency managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern.
Prices are trading close to the key technical resistance level at 9243.06 (R1). After having been unable to move lower than 9047.38 in the prior session, BTC/USD found buyers again around the same price level today at 9052.40. The last time this happened on Wednesday, BTCUSD actually lost -1.58% on the following trading day.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could speed up should prices move above the nearby swing high at 9299.67 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 8954.67 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for BTC/USD. Out of 846 times, BTCUSD closed higher 54.02% 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 60.17% with an average market move of 7.33%.
With six out of the other six Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are LTCUSD gaining 2.31% and BCHUSD closing 2.07% higher. None of the markets ended the day in the red. Looking at the Minor Cryptocurrencies, the winners of the day have been VETBTC surging 21.24% and LTCCNY closing 4.51% higher. The worst performers of the day have been DOGEUSD tanking -3.01% and ICXBTC closing -1.88% lower. Read more