ZECBTC dominated by bulls lifting the market higher throughout the day
ZCash/Bitcoin Index (ZECBTC) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
ZECBTC finished Saturday at 0.00388 surging BTC0.00049 (14.45%) on high volume. This is the biggest single-day gain in over three months. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 0.00353, ZCash confirmed its breakout through the prior session high after trading up to BTC0.00037 above it intraday.
Daily Candlestick Chart (ZECBTC as at Nov 21, 2020):
Saturday's trading range has been BTC0.00052 (15.34%), that's above the last trading month's daily average range of BTC0.00032. 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 lower than usual for ZECBTC.
Regardless of a weak opening ZEC/BTC managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The cryptocurrency managed to close above the 20-day moving average at 0.00381 for the first time since October 15th. When this moving average was crossed above the last time on September 29th, ZECBTC gained 5.12% on the following trading day. Prices are trading close to the key technical resistance level at 0.00407 (R1). After having been unable to move lower than 0.00336 in the prior session, the market found buyers again around the same price level today at 0.00338.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 0.00381.
While ZEC is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the close-by swing high at 0.00412 where further buy stops might get triggered. As prices are trading close to November's high at 0.00429, upside momentum could speed up should ZECBTC mark new highs for the month.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for ZEC/BTC. Out of 41 times, ZECBTC closed lower 63.41% 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 two trading days, showing a win rate of 65.85% with an average market move of -0.94%.