DASHBTC breaks below key technical support level
Dash/Bitcoin Index (DASHBTC) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
DASHBTC ended Sunday at 0.00491 losing BTC0.00014 (-2.77%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DASHBTC as at Nov 22, 2020):
Sunday's trading range has been BTC0.00029 (5.74%), that's slightly above the last trading month's daily average range of BTC0.00027. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DASHBTC.
Prices broke below the key technical support level at 0.00497 (now R1), which is likely to act as resistance going forward. After having been unable to move above 0.00505 in the prior session, Dash ran into sellers again around the same price level today, failing to move higher than 0.00509. The last time this happened on Friday, DASHBTC actually gained 13.23% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 0.00462.
Although DASH/BTC 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 the cryptocurrency mark new highs for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Its common bearish interpretation has been confirmed for DASH/BTC. Out of 289 times, DASHBTC closed lower 53.29% of the time on the next trading day after the market condition occurred.