XVGBTC closes below its opening price unable to hold early session gains
Verge/Bitcoin Index (XVGBTC) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
XVGBTC finished Monday at 0.00000042 tanking BTC0.00000003 (-6.67%). Trading BTC0.00000002 higher after the open, XVG was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Sunday's low at 0.00000043, the cryptocurrency confirmed its breakout through the previous session low after trading up to BTC0.00000001 below it intraday.
Daily Candlestick Chart (XVGBTC as at Jun 01, 2020):
Monday's trading range has been BTC0.00000005 (11.11%), that's above the last trading month's daily average range of BTC0.00000004. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for XVGBTC.
Regardless of a strong opening XVG/BTC closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, three candlestick patterns are matching today's price action, the Tweezer Top which is known as bullish pattern and two bearish patterns, the Bearish Closing Marubozu and the Black Candle. The last time a Bearish Closing Marubozu showed up on April 30th, XVGBTC actually gained 2.94% on the following trading day.
Verge closed back below the 200-day moving average at 0.00000045. After having been unable to move above 0.00000047 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 0.00000047.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could accelerate should prices move below the close-by swing low at 0.00000041 where further sell stops might get activated.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Closing Marubozu" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for XVG/BTC. Out of 48 times, XVGBTC closed higher 58.33% 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 10 trading days, showing a win rate of 43.75% with an average market move of 40.22%.
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 KCSBTC closing -5.26% lower. Read more