ZECBTC closes above its opening price after recovering from early selling pressure
ZCash/Bitcoin Index (ZECBTC) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
ZECBTC ended Saturday at 0.00554 edging higher BTC0.00002 (0.36%). Trading up to BTC0.00010 lower after the open, the cryptocurrency managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ZECBTC as at Oct 17, 2020):
Saturday's trading range has been BTC0.00016 (2.9%), that's far below the last trading month's daily average range of BTC0.00036. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ZECBTC.
After moving lower in the prior session, ZCash managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical resistance level at 0.00576 (R1). After having been unable to move lower than 0.00543 in the prior session, ZEC/BTC found buyers again around the same price level today at 0.00542. The last time this happened on October 9th, ZECBTC gained 2.78% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Further selling could move prices lower should the market test September's nearby low at 0.00494.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for ZEC/BTC. Out of 200 times, ZECBTC closed lower 60.00% 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 61.00% with an average market move of -1.99%.
With four out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 0.81% and BTCUSD closing 0.37% higher. On the flipside the worst performers have been BCHUSD closing -2.05% lower and LTCUSD losing -1.43%. Looking at the other Minor Cryptocurrencies, the winners of the day have been WAVESUSD surging 8.14% and WAVESBTC closing 7.59% higher. The worst performers of the day have been BCNUSD tanking -10.94% and BCHBTC closing -2.26% lower. Read more