HSRBTC still stuck within tight trading range
Hshare/Bitcoin Index (HSRBTC) Technical Analysis Report for Aug 01, 2020 | by Techniquant Editorial Team
HSRBTC finished Saturday at 0.000124 gaining BTC0.000002 (1.64%). 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 Aug 01, 2020):
Saturday's trading range has been BTC0.000009 (7.38%), that's slightly below the last trading month's daily average range of BTC0.000010. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HSRBTC. Prices continued to consolidate within a tight trading range between 0.000119 and 0.000134 where it has been caught now for the whole last trading week.
Regardless of a weak opening HSR/BTC managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on July 3rd, HSRBTC gained 1.67% on the following trading day.
Prices are trading close to the key technical support level at 0.000117 (S1). Unable to break through the key technical resistance level at 0.000127 (R1), the cryptocurrency closed below it after spiking up to 0.000129 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. The market was bought again around 0.000120 after having seen lows at 0.000119, 0.000120 and 0.000120 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 0.000119 where further sell stops could get activated. Trading close to June's low at 0.000108 we might see further downside momentum if potential sell stops at the level get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for HSR/BTC. Out of 87 times, HSRBTC closed lower 54.02% 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 68.97% with an average market move of -3.85%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are XRPUSD gaining 12.04% and ETHUSD closing 11.71% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been ZECUSD surging 19.59% and DOGEUSD closing 15.6% higher. The worst performers of the day have been STRATBTC tanking -4.08% and ARDRBTC closing -4.0% lower. Read more