ETCBTC closes below its opening price unable to hold early session gains
Ethereum Classic/Bitcoin Index (ETCBTC) Technical Analysis Report for Feb 08, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, ETCBTC ended Saturday at 0.001180 edging lower BTC0.000012 (-1.01%). Trading BTC0.000032 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Thursday, ETCBTC lost -3.87% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ETCBTC as at Feb 08, 2020):
Saturday's trading range has been BTC0.000075 (6.29%), that's below the last trading month's daily average range of BTC0.000101. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for ETCBTC.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.
After trading as low as 0.001149 during the day, ETC/BTC found support at the 20-day moving average at 0.001163. ETC found buyers again today around 0.001149 for the third trading day in a row after having found demand at 0.001159 in the prior session and at 0.001149 two days ago.
While the cryptocurrency is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might accelerate should prices move below the nearby swing low at 0.001149 where further sell stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for ETC/BTC. Out of 91 times, ETCBTC closed lower 56.04% 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 62.64% with an average market move of -0.96%.
With five out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are EOSUSD gaining 4.59% and LTCUSD closing 4.42% higher. On the flipside the worst performers have been XRPUSD closing -0.36% lower and ETCUSD losing -0.09%. Looking at the other Minor Cryptocurrencies, the winners of the day have been DOGEUSD surging 11.57% and LSKUSD closing 10.81% higher. The worst performers of the day have been BCNUSD tanking -10.54% and KMDBTC closing -7.6% lower. Read more