LSKBTC finds buyers again around 0.000085
Lisk/Bitcoin Index (LSKBTC) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
LSKBTC finished the week -10.42% lower at 0.000086 after flat today. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (LSKBTC as at Oct 23, 2020):
Friday's trading range has been BTC0.000002 (2.33%), that's far below 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 above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LSKBTC.
Regardless of a weak opening the cryptocurrency managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, four candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern, the Southern Doji and the Tweezer Bottom which are known as bullish patterns and one neutral pattern, the Doji. The last time a Last Engulfing Bottom Pattern showed up on Monday, LSKBTC actually lost -4.26% on the following trading day.
Prices are trading close to the key technical support level at 0.000084 (S1). After having been unable to move lower than 0.000085 in the previous session, the market found buyers again around the same price level today at 0.000085.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 0.000097.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 0.000084 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for LSK/BTC. Out of 50 times, LSKBTC closed lower 70.00% 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 60.00% with an average market move of -0.01%.