XLMBTC pushes through Friday's high
Stellar/Bitcoin Index (XLMBTC) Technical Analysis Report for Aug 01, 2020 | by Techniquant Editorial Team
XLMBTC finished Saturday at 0.00000911 gaining BTC0.00000056 (6.55%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 0.00000875, the cryptocurrency confirmed its breakout through the previous session high after trading up to BTC0.00000054 above it intraday.
Daily Candlestick Chart (XLMBTC as at Aug 01, 2020):
Saturday's trading range has been BTC0.00000077 (9.01%), that's slightly below the last trading month's daily average range of BTC0.00000077. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for XLMBTC.
Regardless of a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on July 25th, XLMBTC actually lost -4.04% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Stellar managed to close back above the 50-day moving average at 0.00000865.
Though XLM/BTC is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for XLM/BTC. Out of 260 times, XLMBTC closed lower 58.08% 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 61.54% with an average market move of -1.34%.
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