WAVESBTC finds buyers at key support level
Waves/Bitcoin Index (WAVESBTC) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
WAVESBTC finished Saturday at 0.0003328 tanking BTC0.0000304 (-8.37%). This is the biggest single-day loss in over two months. The bears were in full control today, moving the market lower throughout the whole session. 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 Nov 21, 2020):
Saturday's trading range has been BTC0.0000445 (12.25%), that's far above the last trading month's daily average range of BTC0.0000242. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for WAVESBTC.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 0.0003243 earlier during the day, WAVES/BTC bounced off the key technical support level at 0.0003245 (S1). The failure to close below the support could increase that levels significance as support going forward.
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 0.0002619. The last time this happened on Tuesday, WAVESBTC actually gained 4.12% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight 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 WAVES/BTC. Out of 46 times, WAVESBTC closed lower 58.70% of the time on the next trading day after the market condition occurred.