XMRBTC breaks below key technical support level
XMR/Bitcoin Index (XMRBTC) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, XMRBTC ended Monday at 0.00664 tanking BTC0.00024 (-3.49%). This is the biggest single-day loss in over two weeks. Today's close at 0.00664 marks the lowest recorded closing price since May 9th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Sunday's low at 0.00684, the cryptocurrency confirmed its breakout through the previous session low after trading up to BTC0.00024 below it intraday.
Daily Candlestick Chart (XMRBTC as at Jun 01, 2020):
Monday's trading range has been BTC0.00033 (4.8%), that's far above the last trading month's daily average range of BTC0.00022. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for XMRBTC.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 0.00668 (now R1), which is likely to act as resistance going forward.
Crossing below the lower Bollinger Band for the first time since May 6th, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 0.00688 or signal the beginning of a strong momentum breakout leading to even lower prices. The last time prices broke out below the lower Bollinger Band on April 29th, XMRBTC lost -4.38% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the lower Bollinger Band" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for XMR/BTC. Out of 62 times, XMRBTC closed higher 67.74% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after two trading days, showing a win rate of 61.29% with an average market move of 1.05%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are BTCUSD gaining 8.05% and ETHUSD closing 7.11% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been LTCGBP surging 18.45% and NEOUSD closing 13.82% higher. The worst performers of the day have been STEEMBTC tanking -9.09% and XVGBTC closing -6.67% lower. Read more