QTUMBTC enters Golden Cross for the first time since April 2nd
QTUM/Bitcoin Index (QTUMBTC) Technical Analysis Report for Aug 01, 2020 | by Techniquant Editorial Team
QTUMBTC ended Saturday at 0.000225 gaining BTC0.000012 (5.63%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 0.000216, the cryptocurrency confirmed its breakout through the previous session high after trading up to BTC0.000013 above it intraday.
Daily Candlestick Chart (QTUMBTC as at Aug 01, 2020):
Saturday's trading range has been BTC0.000017 (7.98%), that's slightly above the last trading month's daily average range of BTC0.000015. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for QTUMBTC.
Even with a weak opening Qtum 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.
Buyers managed to take out the key technical resistance level at 0.000214 (now S1), which is likely to act as support going forward. The last time this happened on July 13th, QTUMBTC gained 5.83% on the following trading day. Prices are trading close to the key technical resistance level at 0.000232 (R1).
While the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish. With its 50-day moving average crossing above its 200-day moving average, QTUM/BTC has entered a so-called "Golden Cross" for the first time since April 2nd. Showing increasing upward momentum in the short and medium-term the "Golden Cross" is known to indicate a potential bull market on the horizon.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Golden Cross" stand out. Its common bullish interpretation has been confirmed for QTUM/BTC. Out of 3 times, QTUMBTC closed higher 100.00% 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 five trading days, showing a win rate of 66.67% with an average market move of 5.11%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are XRPUSD gaining 12.04% and ETHUSD closing 11.71% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been ZECUSD surging 19.59% and DOGEUSD closing 15.6% higher. The worst performers of the day have been STRATBTC tanking -4.08% and ARDRBTC closing -4.0% lower. Read more