NANOBTC fails to close above 20-day moving average
Nano/Bitcoin Index (NANOBTC) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
NANOBTC finished Sunday at 0.000071 gaining BTC0.000001 (1.43%).
Daily Candlestick Chart (NANOBTC as at Oct 18, 2020):
Sunday's trading range has been BTC0.000003 (4.29%), that's slightly below the last trading month's daily average range of BTC0.000004. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NANOBTC. Prices continued to consolidate within a tight trading range between 0.000068 and 0.000072 where it has been caught now for the whole last trading week.
Regardless of a weak opening Nano managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the Tweezer Bottom.
After spiking up to 0.000072 during the day, NANO/BTC found resistance at the 20-day moving average at 0.000071. The last time this happened on September 26th, NANOBTC lost 0.00% on the following trading day. After having been unable to move lower than 0.000069 in the prior session, the market found buyers again around the same price level today at 0.000069.
While the cryptocurrency is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 0.000075 where further buy stops could get activated. With prices trading close to this year's low at 0.000063, downside momentum might speed up should NANOBTC break out to new lows for the year. As prices are trading close to October's low at 0.000065, downside momentum could accelerate should Nano mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Its common bearish interpretation has been confirmed for NANO/BTC. Out of 53 times, NANOBTC closed lower 54.72% 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 71.70% with an average market move of -3.27%.
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