XLMBTC fails to close above 50-day moving average
Stellar/Bitcoin Index (XLMBTC) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, XLMBTC finished Saturday at 0.00000719 surging BTC0.00000022 (3.16%) on high volume. Today's close at 0.00000719 marks the highest recorded closing price since September 17th.
Daily Candlestick Chart (XLMBTC as at Oct 17, 2020):
Saturday's trading range has been BTC0.00000049 (7.03%), that's far above the last trading month's daily average range of BTC0.00000022. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XLMBTC.
Buyers managed to take out the key technical resistance level at 0.00000710 (now S1), which is likely to act as support going forward. After spiking up to 0.00000737 during the day, XLM/BTC found resistance at the 50-day moving average at 0.00000720.
Crossing above the upper Bollinger Band for the first time since August 16th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 0.00000679 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 August 16th, XLMBTC actually lost -4.14% on the following trading day.
While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for XLM/BTC. Out of 235 times, XLMBTC closed lower 62.55% of the time on the next trading day after the market condition occurred.
With four out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 0.81% and BTCUSD closing 0.37% higher. On the flipside the worst performers have been BCHUSD closing -2.05% lower and LTCUSD losing -1.43%. Looking at the other Minor Cryptocurrencies, the winners of the day have been WAVESUSD surging 8.14% and WAVESBTC closing 7.59% higher. The worst performers of the day have been BCNUSD tanking -10.94% and BCHBTC closing -2.26% lower. Read more