DASHBTC breaks back above 20-day moving average
Dash/Bitcoin Index (DASHBTC) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
DASHBTC finished Saturday at 0.00505 surging BTC0.00059 (13.23%). This is the biggest single-day gain in over three months. Today's close at 0.00505 marks the highest recorded closing price since October 31st. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 0.00465, DASH/BTC confirmed its breakout through the previous session high after trading up to BTC0.00040 above it intraday.
Daily Candlestick Chart (DASHBTC as at Nov 21, 2020):
Saturday's trading range has been BTC0.00061 (13.68%), that's far above the last trading month's daily average range of BTC0.00027. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DASHBTC.
Despite a weak opening Dash managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns. The last time a Bullish Closing Marubozu showed up on December 29, 2019, DASHBTC actually lost -3.80% on the following trading day.
The market managed to close back above the 20-day moving average at 0.00461. The cryptocurrency found buyers again today around 0.00444 for the third trading day in a row after having found demand at 0.00443 in the previous session and at 0.00443 two days ago.
Crossing above the upper Bollinger Band for the first time since August 6th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 0.00461 or signal the beginning of a strong momentum breakout leading to even higher prices.
Though DASHBTC is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
As prices are trading close to November's high at 0.00514, upside momentum might speed up should DASH/BTC mark new highs for the month.
Among the 16 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Closing Marubozu" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for DASH/BTC. Out of 18 times, DASHBTC closed lower 66.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 72.22% with an average market move of -14.55%.