XLMBTC closes below its opening price unable to hold early session gains
Stellar/Bitcoin Index (XLMBTC) Technical Analysis Report for Mar 16, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, XLMBTC finished Saturday at 0.00002684 losing BTC0.00000005 (-0.19%). Trading BTC0.00000042 higher after the open, XLM/BTC 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 in a lackluster session.
Daily Candlestick Chart (XLMBTC as at Mar 16, 2019):
Saturday's trading range has been BTC0.00000060 (2.23%), that's below the last trading month's daily average range of BTC0.00000130. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for XLMBTC.
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. Additionally, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Doji showed up on February 23rd, XLMBTC lost -3.29% on the following trading day.
After having been unable to move lower than 0.00002655 in the prior session, XLM found buyers again around the same price level today at 0.00002667.
Though the cryptocurrency is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could accelerate should prices move below the nearby swing low at 0.00002655 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for XLM/BTC. Out of 573 times, XLMBTC closed lower 51.31% 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 two trading days, showing a win rate of 56.54% with an average market move of 0.33%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are BCHUSD gaining 8.19% and LTCUSD closing 4.83% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCHBTC surging 5.72% and LTCGBP closing 5.01% higher. The worst performers of the day have been SCBTC tanking -5.56% and KMDBTC closing -5.06% lower. Read more