ZECBTC dominated by bears dragging the market lower throughout the day
ZCash/Bitcoin Index (ZECBTC) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
ZECBTC finished Saturday at 0.00511 losing BTC0.00009 (-1.73%) on low volume. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ZECBTC as at May 23, 2020):
Saturday's trading range has been BTC0.00012 (2.31%), that's far below the last trading month's daily average range of BTC0.00024. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ZECBTC.
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. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on May 5th, ZECBTC lost -4.53% on the following trading day.
Prices are trading close to the key technical support level at 0.00499 (S1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 0.00530 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 0.00493 where further sell stops could get activated. As prices are trading close to May's high at 0.00534, upside momentum might speed up should the market mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Its common bearish interpretation has been confirmed for ZEC/BTC. Out of 75 times, ZECBTC closed lower 65.33% 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 10 trading days, showing a win rate of 74.67% with an average market move of -6.64%.
With five out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and LTCUSD closing -0.81% lower. On the flipside the best performers have been ETCUSD closing 1.55% higher and BTCUSD gaining 0.23%. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 10.84% and XVGUSD closing 5.05% higher. The worst performers of the day have been HSRBTC tanking -9.88% and ARDRBTC closing -9.27% lower. Read more