ETCBTC closes within previous day's range
Ethereum Classic/Bitcoin Index (ETCBTC) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
ETCBTC finished Sunday at 0.000328 tanking BTC0.000026 (-7.34%). This is the biggest single-day loss in over two months. The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ETCBTC as at Nov 22, 2020):
Sunday's trading range has been BTC0.000034 (9.6%), that's far above the last trading month's daily average range of BTC0.000019. 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.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Friday, ETCBTC actually gained 8.92% on the following trading day.
Prices are trading close to the key technical support level at 0.000322 (S1). ETC/BTC closed back below the 20-day moving average at 0.000331. ETC found buyers again today around 0.000324 for the third trading day in a row after having found demand at 0.000322 in the prior session and at 0.000320 two days ago.
While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could accelerate should prices move below the close-by swing low at 0.000320 where further sell stops might get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Its common bearish interpretation has been confirmed for ETC/BTC. Out of 210 times, ETCBTC closed lower 58.10% 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 60.95% with an average market move of 0.97%.