ELFBTC breaks below key technical support level
Aelf/Bitcoin Index (ELFBTC) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
ELFBTC ended Saturday at 0.00000939 tanking BTC0.00000077 (-7.58%) on high volume. This is the biggest single-day loss in over two months. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ELFBTC as at May 23, 2020):
Saturday's trading range has been BTC0.00000144 (14.17%), that's far above the last trading month's daily average range of BTC0.00000064. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ELFBTC.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 0.00000906 (S1). Prices broke below the key technical support level at 0.00000983 (now R1), which is likely to act as resistance going forward. The last time this happened on May 5th, ELFBTC lost -3.81% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 0.00000772.
Although ELF is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Its common bearish interpretation has been confirmed for ELF/BTC. Out of 188 times, ELFBTC closed lower 56.38% 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 60.11% with an average market move of -2.17%.
With five out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and LTCUSD closing -0.81% lower. On the flipside the best performers have been ETCUSD closing 1.55% higher and BTCUSD gaining 0.23%. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 10.84% and XVGUSD closing 5.05% higher. The worst performers of the day have been HSRBTC tanking -9.88% and ARDRBTC closing -9.27% lower. Read more