BTCUSD finds buyers at key support level
Bitcoin/US Dollar Index (BTCUSD) Technical Analysis Report for Jul 07, 2020 | by Techniquant Editorial Team
BTCUSD ended Tuesday at 9257.32 losing $89.73 (-0.96%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BTCUSD as at Jul 07, 2020):
Tuesday's trading range has been $170.38 (1.82%), that's below the last trading month's daily average range of $237.23. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BTCUSD.
After moving higher in the previous session, BTC closed lower but above the prior day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on June 23rd, BTCUSD lost -3.40% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 9208.31 earlier during the day, Bitcoin bounced off the key technical support level at 9243.06 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move above 9372.09 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 9378.69.
BTC/USD shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Further selling could move prices lower should the market test June's close-by low at 8867.34.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for BTC/USD. Out of 137 times, BTCUSD closed higher 56.20% 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 55.47% with an average market move of 5.69%.
With five out of the other six Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -2.29% and XRPUSD closing -1.96% lower. On the flipside the best performer has been ETCUSD closing 1.8% higher. Looking at the Minor Cryptocurrencies, the winners of the day have been VETBTC surging 22.08% and DOGEUSD closing 18.57% higher. The worst performers of the day have been KCSBTC tanking -11.78% and BTGUSD closing -7.1% lower. Read more