KMDBTC finds buyers again around 0.0000251
Komodo/Bitcoin Index (KMDBTC) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
KMDBTC ended Saturday at 0.0000276 surging BTC0.0000021 (8.24%) on high volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 0.0000268, the cryptocurrency confirmed its breakout through the previous session high after trading up to BTC0.0000010 above it intraday.
Daily Candlestick Chart (KMDBTC as at Nov 21, 2020):
Saturday's trading range has been BTC0.0000027 (10.59%), that's far above the last trading month's daily average range of BTC0.0000020. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly 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 0.0000251 and 0.0000284 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Despite a weak opening Komodo managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 0.0000251 earlier during the day, KMD bounced off the key technical support level at 0.0000251 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on September 8th, KMDBTC gained 4.15% on the following trading day. After having been unable to move lower than 0.0000254 in the previous session, KMD/BTC found buyers again around the same price level today at 0.0000251.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 0.0000280 where further buy stops could get triggered.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for KMD/BTC. Out of 65 times, KMDBTC closed lower 50.77% 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 66.15% with an average market move of -1.37%.