ETCUSD plunges, losing $0.57 (-8.56%) within a single day on high volume
Ethereum Classic/US Dollar Index (ETCUSD) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
ETCUSD finished Sunday at 6.09 tanking $0.57 (-8.56%) on high volume. This is the biggest single-day loss in over two months. Closing below Saturday's low at 6.12, the market confirmed its breakout through the prior session low after trading up to $0.28 below it intraday.
Daily Candlestick Chart (ETCUSD as at Nov 22, 2020):
Sunday's trading range has been $0.88 (13.21%), that's far above the last trading month's daily average range of $0.44. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ETCUSD.
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. Even with a strong opening ETC/USD closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 5.84 during the day, the cryptocurrency found support at the 100-day moving average at 5.87. ETCUSD closed back below the 200-day moving average at 6.21. When this moving average was crossed below the last time on Friday, ETCUSD actually gained 7.59% on the following trading day. After having been unable to move above 6.71 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 6.72.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 5.45.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for ETC/USD. Out of 58 times, ETCUSD closed higher 60.34% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.62% with an average market move of 5.05%.