ZECUSD dominated by bulls lifting the market higher throughout the day
ZCash/US Dollar Index (ZECUSD) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ZECUSD ended Sunday at 64.42 gaining $1.30 (2.06%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Saturday's high at 63.51, ZEC/USD confirmed its breakout through the prior session high after trading up to $0.97 above it intraday.
Daily Candlestick Chart (ZECUSD as at Oct 18, 2020):
Sunday's trading range has been $1.86 (2.95%), that's far below the last trading month's daily average range of $4.79. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ZECUSD.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on September 10th, ZECUSD actually gained 2.52% on the following trading day.
Prices are trading close to the key technical resistance level at 66.29 (R1).
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling could speed up should prices move below the nearby swing low at 61.07 where further sell stops might get triggered. As prices are trading close to October's low at 58.71, downside momentum could accelerate should the cryptocurrency mark new lows for the month.
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. While it is usually interpreted as bullish, it has actually shown to be bearish for ZEC/USD. Out of 45 times, ZECUSD closed lower 71.11% 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 53.33% with an average market move of -1.60%.
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