ZECBTC breaks back below 20-day moving average
ZCash/Bitcoin Index (ZECBTC) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
ZECBTC finished Sunday at 0.00374 losing BTC0.00014 (-3.61%) on high volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ZECBTC as at Nov 22, 2020):
Sunday's trading range has been BTC0.00028 (7.22%), that's slightly below the last trading month's daily average range of BTC0.00032. 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.
After moving higher in the previous session, the cryptocurrency closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 0.00355 (S1). ZEC/BTC closed back below the 20-day moving average at 0.00379. After having been unable to move above 0.00390 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 0.00394. The last time this happened on Friday, ZECBTC actually gained 14.45% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Its common bearish interpretation has been confirmed for ZEC/BTC. Out of 400 times, ZECBTC closed lower 62.75% 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 63.50% with an average market move of -3.40%.