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• RSI entered oversold territory near 30, signaling potential short-term bounce.
• Volume spiked at 0.00019195 and 0.00019522, confirming bearish breakdowns and bullish retests.
The Horizen/Bitcoin pair (ZENBTC) opened at 0.00019387 on 2025-11-06 at 12:00 ET, reached a high of 0.00020117, a low of 0.00018224, and closed at 0.00019002 as of 2025-11-07 at 12:00 ET. Total volume amounted to 31,961.99, with a notional turnover of approximately $6.09 (in BTC terms). The price action displayed a bearish bias over the last 24 hours, with strong resistance at 0.00020060 and key support at 0.00019002.
The 20-period and 50-period moving averages on the 15-minute chart remained in a bearish alignment, with the price consistently below both. A notable bearish pattern occurred at 0.00019503, where a large bearish candle formed following a rally, suggesting a strong sell-off. RSI dipped into oversold territory near 30, indicating possible short-term stabilization or a small rebound. However, the MACD remained in negative territory with a bearish crossover, reinforcing the downward momentum.
Bollinger Bands showed a moderate expansion during the late afternoon session, with the price hovering near the lower band between 0.00018224 and 0.00018787, highlighting increased bearish volatility. Notable volume spikes occurred at key levels like 0.00019195 and 0.00019522, confirming the breakdown from resistance and the retesting of support. A 61.8% Fibonacci retracement level was observed around 0.00019002, aligning with the daily close and suggesting a potential temporary floor for the pair.
Looking ahead, the price may find temporary support at 0.00019002 but faces a test of its ability to hold above this level. A break below could target 0.00018700, while a rebound above 0.00019400 could signal a potential reversal. Investors should closely monitor volume divergence around the 0.00019400 level, as it may indicate the strength of any short-term rally.
Backtest Hypothesis
The proposed backtest strategy hinges on identifying the Bullish Engulfing candlestick pattern in the ZENBTC pair to capture short-term reversal opportunities. Given the current price action and volume behavior observed in the 24-hour period, the Bullish Engulfing pattern could be most effective when it occurs near key support levels such as 0.00019002 and 0.00018801, where the price historically showed a tendency to consolidate before rebounding. A backtest from 2022-01-01 to today, using the ZENBTC ticker on a liquid exchange like Binance, would provide insights into the reliability of this pattern in capturing mean-reverting or breakout opportunities. This hypothesis aligns with the observed RSI divergence and the retesting of key support levels, suggesting the pattern could serve as a valid entry trigger in a mean-reversion framework.
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