VETBTC breaks back below 50-day moving average
VeChain/Bitcoin Index (VETBTC) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
VETBTC ended Saturday at 0.00000051 flat. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (VETBTC as at May 23, 2020):
Saturday's trading range has been BTC0.00000003 (5.88%), that's slightly below the last trading month's daily average range of BTC0.00000003. 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 VETBTC.
Three candlestick patterns are matching today's price action, the Tweezer Top which is known as bullish pattern, one bearish pattern, the Northern Doji and one neutral pattern, the Doji.
The market closed back below the 50-day moving average at 0.00000051. After having been unable to move above 0.00000052 in the previous session, VeChain ran into sellers again around the same price level today, missing to move higher than 0.00000052. The last time this happened on Thursday, VETBTC actually gained 8.51% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 0.00000048.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 0.00000053 where further buy stops might get activated. As prices are trading close to May's high at 0.00000053, upside momentum could speed up should VET/BTC mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the upper Bollinger Band" stand out. Its common bearish interpretation has been confirmed for VET/BTC. Out of 16 times, VETBTC closed lower 50.00% 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 10 trading days, showing a win rate of 62.50% with an average market move of -7.29%.
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