WAVESBTC breaks below key technical support level
Waves/Bitcoin Index (WAVESBTC) Technical Analysis Report for Aug 01, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, WAVESBTC ended Saturday at 0.0001330 losing BTC0.0000012 (-0.89%). Today's close at 0.0001330 marks the lowest recorded closing price since July 13th. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (WAVESBTC as at Aug 01, 2020):
Saturday's trading range has been BTC0.0000064 (4.77%), that's far below the last trading month's daily average range of BTC0.0000159. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WAVESBTC.
One bullish candlestick pattern matches today's price action, the Takuri Line.
After trading as low as 0.0001290 during the day, the market found support at the 200-day moving average at 0.0001299. Prices broke below the key technical support level at 0.0001335 (now R1), which is likely to act as resistance going forward. The last time this happened on July 27th, WAVESBTC actually gained 2.54% on the following trading day.
Waves shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling might move prices lower should the market test July's close-by low at 0.0001222.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 200" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for WAVES/BTC. Out of 7 times, WAVESBTC closed lower 71.43% 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 57.14% with an average market move of -2.86%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are XRPUSD gaining 12.04% and ETHUSD closing 11.71% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been ZECUSD surging 19.59% and DOGEUSD closing 15.6% higher. The worst performers of the day have been STRATBTC tanking -4.08% and ARDRBTC closing -4.0% lower. Read more