HSRBTC closes below its opening price unable to hold early session gains
Hshare/Bitcoin Index (HSRBTC) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
HSRBTC finished Saturday at 0.000146 tanking BTC0.000016 (-9.88%) on high volume. This is the biggest single-day loss in over two months. The last time we've seen such an unusually strong single-day loss on May 7th, HSRBTC actually gained 5.45% on the following trading day. Trading BTC0.000010 higher after the open, HSR was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (HSRBTC as at May 23, 2020):
Saturday's trading range has been BTC0.000027 (16.67%), that's far above the last trading month's daily average range of BTC0.000011. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HSRBTC.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
The market closed back below the 100-day moving average at 0.000154.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 0.000117.
Although the cryptocurrency 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 eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for HSR/BTC. Out of 47 times, HSRBTC closed lower 61.70% of the time on the next trading day after the market condition occurred.
With five out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and LTCUSD closing -0.81% lower. On the flipside the best performers have been ETCUSD closing 1.55% higher and BTCUSD gaining 0.23%. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 10.84% and XVGUSD closing 5.05% higher. The worst performers of the day have been ARDRBTC tanking -9.27% and ELFBTC closing -7.58% lower. Read more