LSKBTC unable to break through key resistance level
Lisk/Bitcoin Index (LSKBTC) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
LSKBTC ended Sunday at 0.000096 gaining BTC0.000002 (2.13%) on high volume. Closing above Saturday's high at 0.000095, LSK/BTC confirmed its breakout through the previous session high after trading up to BTC0.000002 above it intraday.
Daily Candlestick Chart (LSKBTC as at Oct 18, 2020):
Sunday's trading range has been BTC0.000004 (4.26%), that's slightly above the last trading month's daily average range of BTC0.000004. 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 slightly lower than usual for LSKBTC. Prices continued to consolidate within a tight trading range between 0.000093 and 0.000097 where it has been caught now for the last three trading days.
Even with a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on October 4th, LSKBTC actually lost -2.83% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Tweezer Bottom and the White Candle which are both known as bullish patterns.
Unable to break through the key technical resistance level at 0.000097 (R1), LSK closed below it after spiking up to 0.000097 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. The cryptocurrency found buyers again today around 0.000093 for the third trading day in a row after having found demand at 0.000093 in the previous session and at 0.000093 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for LSK/BTC. Out of 163 times, LSKBTC closed lower 60.12% 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 63.80% with an average market move of 2.06%.
With six out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 2.69% and BCHUSD closing 1.76% higher. On the flipside the worst performer has been ETCUSD closing -0.36% lower. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 13.16% and VETBTC closing 5.15% higher. The worst performers of the day have been WAVESBTC tanking -5.27% and WAVESUSD closing -4.08% lower. Read more