WAVESBTC misses to close above 200-day moving average
Waves/Bitcoin Index (WAVESBTC) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, WAVESBTC ended Saturday at 0.0001168 gaining BTC0.0000003 (0.26%). Trading up to BTC0.0000034 lower after the open, WAVES/BTC managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (WAVESBTC as at May 23, 2020):
Saturday's trading range has been BTC0.0000069 (5.92%), that's slightly below the last trading month's daily average range of BTC0.0000070. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for WAVESBTC.
Five candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Northern Doji which are both known as bearish patterns and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man.
After trading down to 0.0001131 earlier during the day, the cryptocurrency bounced off the key technical support level at 0.0001133 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on May 13th, WAVESBTC actually lost -6.31% on the following trading day. After spiking up to 0.0001200 during the day, the market found resistance at the 200-day moving average at 0.0001190.
Although Waves is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 0.0001216 where further buy stops might get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for WAVES/BTC. Out of 32 times, WAVESBTC closed lower 65.63% of the time on the next trading day after the market condition occurred.
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