TRXBTC snaps to lowest close since August 27th
Tron/Bitcoin Index (TRXBTC) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
TRXBTC ended the week -8.0% lower at 0.00000207 after losing BTC0.00000003 (-1.43%) today. Today's close at 0.00000207 marks the lowest recorded closing price since August 27th. Closing below Thursday's low at 0.00000208, the cryptocurrency confirmed its breakout through the prior session low after trading up to BTC0.00000002 below it intraday.
Daily Candlestick Chart (TRXBTC as at Oct 23, 2020):
Friday's trading range has been BTC0.00000005 (2.38%), that's slightly below the last trading month's daily average range of BTC0.00000009. 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 higher than usual for TRXBTC.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Last Engulfing Bottom Pattern which are both known as bullish patterns and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on September 13th, TRXBTC actually lost -4.04% on the following trading day.
Crossing below the lower Bollinger Band for the first time since Wednesday, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 0.00000230 or signal the beginning of a strong momentum breakout leading to even lower prices.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could accelerate should prices move below the nearby swing low at 0.00000204 where further sell stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Its common bearish interpretation has been confirmed for TRON/BTC. Out of 253 times, TRXBTC closed lower 54.55% 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 60.87% with an average market move of -0.03%.