XLMBTC dominated by bulls lifting the market higher throughout the day
Stellar/Bitcoin Index (XLMBTC) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, XLMBTC ended Saturday at 0.00000585 surging BTC0.00000110 (23.16%) on high volume. This is the biggest single-day gain in over four months. The last time we've seen such an unusually strong single-day gain on October 19th, XLMBTC actually lost -6.22% on the following trading day. Today's close at 0.00000585 marks the highest recorded closing price since October 28th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 0.00000476, Stellar confirmed its breakout through the prior session high after trading up to BTC0.00000113 above it intraday.
Daily Candlestick Chart (XLMBTC as at Nov 21, 2020):
Saturday's trading range has been BTC0.00000115 (24.21%), that's far above the last trading month's daily average range of BTC0.00000027. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for XLMBTC.
One bullish candlestick pattern matches today's price action, the White Candle.
The cryptocurrency managed to close above the 20-day moving average at 0.00000514 for the first time since October 19th.
Crossing above the upper Bollinger Band for the first time since October 19th, 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 0.00000514 or signal the beginning of a strong momentum breakout leading to even higher prices.
While XLM is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for XLM/BTC. Out of 125 times, XLMBTC closed lower 66.40% 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 eight trading days, showing a win rate of 62.40% with an average market move of -3.23%.