ZECBTC closes above its opening price after recovering from early selling pressure
ZCash/Bitcoin Index (ZECBTC) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ZECBTC ended Sunday at 0.00560 gaining BTC0.00006 (1.08%) on low volume. Trading up to BTC0.00005 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Saturday's high at 0.00558, ZCash confirmed its breakout through the previous session high after trading up to BTC0.00002 above it intraday.
Daily Candlestick Chart (ZECBTC as at Oct 18, 2020):
Sunday's trading range has been BTC0.00011 (1.99%), that's far below the last trading month's daily average range of BTC0.00036. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ZECBTC.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on October 11th, ZECBTC actually lost -0.63% on the following trading day.
Prices are trading close to the key technical resistance level at 0.00576 (R1). After having been unable to move above 0.00558 in the prior session, the cryptocurrency ran into sellers again around the same price level today, missing to move higher than 0.00560.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 0.00542 where further sell stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for ZEC/BTC. Out of 19 times, ZECBTC closed lower 73.68% 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 six trading days, showing a win rate of 73.68% with an average market move of 0.41%.
With six out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 2.69% and BCHUSD closing 1.76% higher. On the flipside the worst performer has been ETCUSD closing -0.36% lower. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 13.16% and VETBTC closing 5.15% higher. The worst performers of the day have been WAVESBTC tanking -5.27% and WAVESUSD closing -4.08% lower. Read more