ELFBTC closes below its opening price unable to hold early session gains
Aelf/Bitcoin Index (ELFBTC) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
ELFBTC finished the week -10.7% lower at 0.00000726 after losing BTC0.00000006 (-0.82%) today. Trading BTC0.00000023 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ELFBTC as at Oct 23, 2020):
Friday's trading range has been BTC0.00000038 (5.19%), that's slightly above the last trading month's daily average range of BTC0.00000034. 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 ELFBTC.
Two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Bearish Spinning Top which are both known as bearish patterns. The last time a Bearish Hikkake Pattern showed up on September 9th, ELFBTC actually gained 138.93% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 0.00000821.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 0.00000701 where further sell stops could get activated. With prices trading close to this year's low at 0.00000631, downside momentum might speed up should Aelf break out to new lows for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for ELF/BTC. Out of 24 times, ELFBTC closed lower 58.33% 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 62.50% with an average market move of -3.09%.