BTCEUR finds buyers at key support level
Bitcoin/Euro Index (BTCEUR) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BTCEUR finished Sunday at 15527.28 losing €215.66 (-1.37%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BTCEUR as at Nov 22, 2020):
Sunday's trading range has been €1005.79 (6.39%), that's above the last trading month's daily average range of €730.03. 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 notably higher than usual for BTCEUR.
One bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on September 27th, BTCEUR lost -1.04% on the following trading day.
After trading down to 14775.84 earlier during the day, Bitcoin bounced off the key technical support level at 15517.27 (S1). The failure to close below the support might increase that levels significance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 15969.95 where further buy stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for BTC/EUR. Out of 499 times, BTCEUR closed higher 55.91% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.72% with an average market move of 3.17%.