XMRBTC rallies 6.36% closing BTC0.00041 higher
XMR/Bitcoin Index (XMRBTC) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
XMRBTC finished Saturday at 0.00686 surging BTC0.00041 (6.36%). This is the biggest single-day gain in over a month. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 0.00673, the cryptocurrency confirmed its breakout through the previous session high after trading up to BTC0.00014 above it intraday.
Daily Candlestick Chart (XMRBTC as at Nov 21, 2020):
Saturday's trading range has been BTC0.00048 (7.44%), that's slightly above the last trading month's daily average range of BTC0.00043. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XMRBTC. Prices continued to consolidate within a tight trading range between 0.00639 and 0.00687 where it has been caught now for the last three trading days.
Regardless of a weak opening XMR managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Tweezer Bottom and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 0.00673 (now S1), which is likely to act as support going forward. After having been unable to move lower than 0.00639 in the previous session, XMR/BTC found buyers again around the same price level today at 0.00639. The last time this happened on November 13th, XMRBTC gained 4.33% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 0.00613, downside momentum might speed up should the market break out to new lows for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for XMR/BTC. Out of 315 times, XMRBTC closed lower 63.17% 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 four trading days, showing a win rate of 58.73% with an average market move of -0.08%.