STEEMBTC unable to break through key resistance level
Steem/Bitcoin Index (STEEMBTC) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
STEEMBTC finished Saturday at 0.0000138 flat on low volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (STEEMBTC as at Oct 17, 2020):
Saturday's trading range has been BTC0.0000002 (1.45%), that's far below the last trading month's daily average range of BTC0.0000005. 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 STEEMBTC. Prices continued to consolidate within a tight trading range between 0.0000136 and 0.0000142 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Doji showed up on October 12th, STEEMBTC lost -1.35% on the following trading day.
Unable to break through the key technical resistance level at 0.0000139 (R1), the cryptocurrency closed below it after spiking up to 0.0000139 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 0.0000136 where further sell stops could get activated. With prices trading close to this year's low at 0.0000125, downside momentum might speed up should the market break out to new lows for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for STEEM/BTC. Out of 283 times, STEEMBTC closed lower 61.84% of the time on the next trading day after the market condition occurred.
With four out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 0.81% and BTCUSD closing 0.37% higher. On the flipside the worst performers have been BCHUSD closing -2.05% lower and LTCUSD losing -1.43%. Looking at the other Minor Cryptocurrencies, the winners of the day have been WAVESUSD surging 8.14% and WAVESBTC closing 7.59% higher. The worst performers of the day have been BCNUSD tanking -10.94% and BCHBTC closing -2.26% lower. Read more