WAVESBTC finds buyers around 0.0000994 for the forth day in a row
Waves/Bitcoin Index (WAVESBTC) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, WAVESBTC finished Thursday at 0.0001040 gaining BTC0.0000019 (1.86%) on high volume. Closing above Wednesday's high at 0.0001027, the market confirmed its breakout through the previous session high after trading up to BTC0.0000051 above it intraday.
Daily Candlestick Chart (WAVESBTC as at Jan 23, 2020):
Thursday's trading range has been BTC0.0000084 (8.23%), that's above the last trading month's daily average range of BTC0.0000067. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for WAVESBTC.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 0.0000994 earlier during the day, Waves bounced off the key technical support level at 0.0001016 (S1). The failure to close below the support could increase that levels importance as support going forward. After spiking up to 0.0001078 during the day, WAVES/BTC found resistance at the 20-day moving average at 0.0001054. The cryptocurrency was bought again around 0.0000994 after having seen lows at 0.0000988, 0.0000992 and 0.0000996 in the last three trading sessions. Obviously there is something going on at that level.
WAVESBTC shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish. With its 50-day moving average crossing above its 200-day moving average, the market has entered a so-called "Golden Cross" for the first time since April 30, 2019. Showing increasing upward momentum in the short and medium-term the "Golden Cross" is known to indicate a potential bull market on the horizon. When the last "Golden Cross" happened on December 18, 2018, WAVESBTC gained 9.27% on the following trading day.
Selling might accelerate should prices move below the nearby swing low at 0.0000988 where further sell stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Its common bearish interpretation has been confirmed for WAVES/BTC. Out of 69 times, WAVESBTC closed lower 63.77% 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 68.12% with an average market move of -4.69%.
With seven out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are ETCUSD losing -9.63% and LTCUSD closing -6.3% lower. None of the markets managed to end the day in the green. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 19.15% and LSKBTC closing 7.06% higher. The worst performers of the day have been BTGUSD tanking -9.33% and XEMUSD closing -9.01% lower. Read more