XLMBTC tumbles -3.89% closing BTC0.00000028 lower
Stellar/Bitcoin Index (XLMBTC) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
XLMBTC finished Sunday at 0.00000691 tanking BTC0.00000028 (-3.89%). This is the biggest single-day loss in over three weeks. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (XLMBTC as at Oct 18, 2020):
Sunday's trading range has been BTC0.00000031 (4.31%), that's 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 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. Notwithstanding a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Closing Marubozu and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 0.00000669 (S1). Prices broke below the key technical support level at 0.00000710 (now R1), which is likely to act as resistance going forward. The last time this happened on October 13th, XLMBTC lost -2.84% on the following trading day. After having been unable to move lower than 0.00000688 in the previous session, Stellar found buyers again around the same price level today at 0.00000691.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 0.00000679.
Though XLM/BTC 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 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for XLM/BTC. Out of 754 times, XLMBTC closed lower 53.45% 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 three trading days, showing a win rate of 57.03% with an average market move of 0.28%.
With six out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 2.69% and BCHUSD closing 1.76% higher. On the flipside the worst performer has been ETCUSD closing -0.36% lower. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 13.16% and VETBTC closing 5.15% higher. The worst performers of the day have been WAVESBTC tanking -5.27% and WAVESUSD closing -4.08% lower. Read more