KMDBTC unable to break through key resistance level
Komodo/Bitcoin Index (KMDBTC) Technical Analysis Report for Jul 13, 2019 | by Techniquant Editorial Team
KMDBTC ended Saturday at 0.0001269 losing BTC0.0000040 (-3.06%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (KMDBTC as at Jul 13, 2019):
Saturday's trading range has been BTC0.0000305 (23.3%), that's far above the last trading month's daily average range of BTC0.0000208. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for KMDBTC. Prices continued to consolidate within a tight trading range between 0.0001029 and 0.0001408 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 0.0001089 (S1). Unable to break through the key technical resistance level at 0.0001371 (R1), the market closed below it after spiking up to 0.0001395 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move above 0.0001408 in the prior session, the cryptocurrency ran into sellers again around the same price level today, missing to move higher than 0.0001395. The last time this happened on July 2nd, KMDBTC lost -10.50% on the following trading day.
Though Komodo is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 0.0001408 where further buy stops might get triggered. With prices trading close to this year's low at 0.0000898, downside momentum could speed up should KMD/BTC break out to new lows for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish High-Wave Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for KMD/BTC. Out of 12 times, KMDBTC closed higher 75.00% 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 58.33% with an average market move of 9.55%.
With seven out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are XRPUSD losing -3.89% and LTCUSD closing -3.82% 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 10.06% and XVGBTC closing 5.26% higher. The worst performers of the day have been LTCCNY tanking -8.31% and NEOUSD closing -8.22% lower. Read more