ZECBTC breaks below key technical support level
ZCash/Bitcoin Index (ZECBTC) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ZECBTC finished Monday at 0.00461 losing BTC0.00021 (-4.36%). Today's close at 0.00461 marks the lowest recorded closing price since May 16th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Sunday's low at 0.00479, the cryptocurrency confirmed its breakout through the previous session low after trading up to BTC0.00022 below it intraday.
Daily Candlestick Chart (ZECBTC as at Oct 26, 2020):
Monday's trading range has been BTC0.00029 (6.02%), that's slightly below the last trading month's daily average range of BTC0.00031. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ZECBTC.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on October 4th, ZECBTC gained 3.05% on the following trading day.
Prices broke below the key technical support level at 0.00477 (now R1), which is likely to act as resistance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Its common bearish interpretation has been confirmed for ZEC/BTC. Out of 196 times, ZECBTC closed lower 59.18% 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 66.84% with an average market move of -7.66%.