WAVESBTC closes below its opening price unable to hold early session gains
Waves/Bitcoin Index (WAVESBTC) Technical Analysis Report for May 24, 2020 | by Techniquant Editorial Team
WAVESBTC finished Sunday at 0.0001163 losing BTC0.0000005 (-0.43%). Trading BTC0.0000023 higher after the open, Waves was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (WAVESBTC as at May 24, 2020):
Sunday's trading range has been BTC0.0000049 (4.2%), that's slightly below the last trading month's daily average range of BTC0.0000069. 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.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Notwithstanding a strong opening WAVES/BTC closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical resistance level at 0.0001200 (R1). After having been unable to move above 0.0001200 in the previous session, the cryptocurrency ran into sellers again around the same price level today, missing to move higher than 0.0001191. The last time this happened on May 19th, WAVESBTC actually gained 1.93% on the following trading day.
Although the market 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 0.0001200 where further buy stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for WAVES/BTC. Out of 68 times, WAVESBTC closed higher 63.24% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 54.41% with an average market move of 6.87%.
With six out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are BTCUSD losing -5.09% and BCHUSD closing -4.75% lower. On the flipside the best performer has been ETCUSD closing 0.15% higher. Looking at the other Minor Cryptocurrencies, the winners of the day have been ETCBTC surging 5.6% and ETHCNY closing 4.3% higher. The worst performers of the day have been BCNUSD tanking -13.04% and LTCGBP closing -11.46% lower. Read more