ETCBTC breaks below 50-day moving average for the first time since December 19, 2019
Ethereum Classic/Bitcoin Index (ETCBTC) Technical Analysis Report for Feb 16, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, ETCBTC ended Sunday at 0.000965 tanking BTC0.000083 (-7.92%). Today's close at 0.000965 marks the lowest recorded closing price since January 16th. Closing below Saturday's low at 0.000993, the cryptocurrency confirmed its breakout through the prior session low after trading up to BTC0.000071 below it intraday.
Daily Candlestick Chart (ETCBTC as at Feb 16, 2020):
Sunday's trading range has been BTC0.000140 (13.33%), that's above the last trading month's daily average range of BTC0.000101. 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 ETCBTC.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 0.000909 (S1). ETC closed below the 50-day moving average at 0.000965 for the first time since December 19, 2019. When this moving average was crossed below the last time on December 16, 2019, ETCBTC lost -2.06% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 0.001197.
Though ETC/BTC is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for ETC/BTC. Out of 52 times, ETCBTC closed lower 55.77% 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 65.38% with an average market move of -4.95%.
With seven out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are ETCUSD losing -8.42% and BCHUSD closing -7.51% lower. None of the markets managed to end the day in the green. Looking at the other Minor Cryptocurrencies, the winner of the day has been BTCCNY surging 3.36%. The worst performers of the day have been HSRBTC tanking -13.51% and BCNUSD closing -12.08% lower. Read more