SCBTC dominated by bulls lifting the market higher throughout the day
Siacoin/Bitcoin Index (SCBTC) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
SCBTC ended Saturday at 0.00000017 surging BTC0.00000003 (21.43%) on high volume. This is the biggest single-day gain in over two months. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 0.00000016, the market confirmed its breakout through the previous session high after trading up to BTC0.00000001 above it intraday.
Daily Candlestick Chart (SCBTC as at Nov 21, 2020):
Saturday's trading range has been BTC0.00000003 (21.43%), that's far above the last trading month's daily average range of BTC0.00000002. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SCBTC.
Even with a weak opening the cryptocurrency managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, five candlestick patterns are matching today's price action, the Bullish Belt-hold, the Bullish Closing Marubozu, the Bullish Marubozu, the Tweezer Bottom and the White Candle which are known as bullish patterns. The last time a Bullish Closing Marubozu showed up on August 26th, SCBTC actually lost -8.11% on the following trading day.
SC/BTC managed to close above the 20-day moving average at 0.00000016 for the first time since October 14th. After having been unable to move lower than 0.00000014 in the previous session, Sia found buyers again around the same price level today at 0.00000014.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 0.00000016.
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 0.00000018 where further buy stops could get triggered. As prices are trading close to November's high at 0.00000019, upside momentum might accelerate should SCBTC mark new highs for the month.
Among the 16 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Belt-hold" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for SC/BTC. Out of 12 times, SCBTC closed lower 75.00% 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 seven trading days, showing a win rate of 66.67% with an average market move of -3.93%.