WAVESBTC finds buyers at key support level
Waves/Bitcoin Index (WAVESBTC) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
WAVESBTC finished Sunday at 0.0003834 surging BTC0.0000506 (15.2%) on high volume. This is the biggest single-day gain in over three months. Today's close at 0.0003834 marks the highest recorded closing price since May 9, 2019. Closing above Saturday's high at 0.0003688, the market confirmed its breakout through the previous session high after trading up to BTC0.0000508 above it intraday.
Daily Candlestick Chart (WAVESBTC as at Nov 22, 2020):
Sunday's trading range has been BTC0.0001063 (31.94%), that's far above the last trading month's daily average range of BTC0.0000290. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for WAVESBTC.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern.
After trading down to 0.0003133 earlier during the day, Waves bounced off the key technical support level at 0.0003245 (S1). The failure to close below the support might increase that levels significance as support going forward.
Crossing above the upper Bollinger Band for the first time since Friday, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 0.0002696 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on Wednesday, WAVESBTC gained 12.78% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. Its common bullish interpretation has been confirmed for WAVES/BTC. Out of 25 times, WAVESBTC closed higher 60.00% 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 64.00% with an average market move of 8.93%.