ETHBTC unable to break through key resistance level
Ethereum/Bitcoin Index (ETHBTC) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
ETHBTC finished Thursday at 0.01936 losing BTC0.00002 (-0.1%). Trading BTC0.00016 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on January 16th, ETHBTC actually gained 1.54% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ETHBTC as at Jan 23, 2020):
Thursday's trading range has been BTC0.00043 (2.22%), that's below the last trading month's daily average range of BTC0.00073. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ETHBTC. Prices continued to consolidate within a tight trading range between 0.01887 and 0.01966 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Notwithstanding a strong opening the cryptocurrency closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
Unable to break through the key technical resistance level at 0.01947 (R1), Ether closed below it after spiking up to 0.01954 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. ETH/BTC was sold again around 0.01954 after having seen highs at 0.01964, 0.01961 and 0.01957 in the last three trading sessions. Obviously there is something going on at that level.
While ETH is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 0.01964 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 0.01907 where further sell stops could get triggered.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior three Highs" stand out. Its common bearish interpretation has been confirmed for ETH/BTC. Out of 18 times, ETHBTC closed lower 61.11% 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 72.22% with an average market move of -7.17%.
With seven out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are ETCUSD losing -9.63% and LTCUSD closing -6.3% lower. None of the markets managed to end the day in the green. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 19.15% and LSKBTC closing 7.06% higher. The worst performers of the day have been BTGUSD tanking -9.33% and XEMUSD closing -9.01% lower. Read more