ETCBTC still stuck within tight trading range
Ethereum Classic/Bitcoin Index (ETCBTC) Technical Analysis Report for Feb 13, 2020 | by Techniquant Editorial Team
ETCBTC ended Thursday at 0.001170 losing BTC0.000016 (-1.35%). Trading BTC0.000064 higher after the open, ETC was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ETCBTC as at Feb 13, 2020):
Thursday's trading range has been BTC0.000117 (9.9%), that's slightly above the last trading month's daily average range of BTC0.000101. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for ETCBTC. Prices continued to consolidate within a tight trading range between 0.001128 and 0.001246 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on February 9th, ETCBTC actually gained 4.16% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns.
After trading down to 0.001129 earlier during the day, ETC/BTC bounced off the key technical support level at 0.001149 (S1). The failure to close below the support might increase that levels importance as support going forward.
While the market 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 close-by swing low at 0.001128 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish High-Wave Candle" stand out. Its common bearish interpretation has been confirmed for ETC/BTC. Out of 21 times, ETCBTC closed lower 71.43% 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 61.90% with an average market move of -4.60%.
With six out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are ETCUSD losing -2.77% and LTCUSD closing -2.25% lower. On the flipside the best performer has been XRPUSD closing 6.59% higher. Looking at the other Minor Cryptocurrencies, the winners of the day have been STEEMBTC surging 13.06% and XRPBTC closing 8.82% higher. The worst performers of the day have been LSKUSD tanking -10.61% and LSKBTC closing -9.42% lower. Read more