STRATBTC closes above its opening price after recovering from early selling pressure
Stratis/Bitcoin Index (STRATBTC) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, STRATBTC ended Saturday at 0.000037 gaining BTC0.000001 (2.78%). Today's close at 0.000037 marks the highest recorded closing price since April 29th. Trading up to BTC0.000001 lower after the open, Stratis managed to reverse during the session as bulls took control ending the day above its opening price. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (STRATBTC as at May 23, 2020):
Saturday's trading range has been BTC0.000002 (5.56%), that's slightly below the last trading month's daily average range of BTC0.000002. 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 STRATBTC.
Crossing above the upper Bollinger Band for the first time since April 18th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 0.000034 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on April 18th, STRATBTC actually lost -2.27% on the following trading day.
Though STRAT is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for STRAT/BTC. Out of 149 times, STRATBTC closed lower 57.72% 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 two trading days, showing a win rate of 53.02% with an average market move of -0.10%.
With five out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and LTCUSD closing -0.81% lower. On the flipside the best performers have been ETCUSD closing 1.55% higher and BTCUSD gaining 0.23%. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 10.84% and XVGUSD closing 5.05% higher. The worst performers of the day have been HSRBTC tanking -9.88% and ARDRBTC closing -9.27% lower. Read more