ETCBTC finds buyers again around 0.000322
Ethereum Classic/Bitcoin Index (ETCBTC) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
ETCBTC ended Saturday at 0.000354 surging BTC0.000029 (8.92%). This is the biggest single-day gain in over three months. Today's close at 0.000354 marks the highest recorded closing price since November 2nd. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 0.000340, ETC confirmed its breakout through the prior session high after trading up to BTC0.000014 above it intraday.
Daily Candlestick Chart (ETCBTC as at Nov 21, 2020):
Saturday's trading range has been BTC0.000032 (9.85%), that's far above the last trading month's daily average range of BTC0.000018. 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 ETCBTC.
Even with a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on November 10th, ETCBTC actually lost -3.28% on the following trading day.
The cryptocurrency managed to close back above the 20-day moving average at 0.000332. Prices are trading close to the key technical resistance level at 0.000357 (R1). After having been unable to move lower than 0.000320 in the prior session, ETC/BTC found buyers again around the same price level today at 0.000322.
Although ETCBTC is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for ETC/BTC. Out of 187 times, ETCBTC closed lower 61.50% 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 four trading days, showing a win rate of 64.17% with an average market move of -0.13%.