BTCGBP breaks below key technical support level
Bitcoin/British Pound Index (BTCGBP) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BTCGBP ended Thursday at 6402.94 losing £191.92 (-2.91%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 6544.56, BTC confirmed its breakout through the previous session low after trading up to £223.03 below it intraday.
Daily Candlestick Chart (BTCGBP as at Jan 23, 2020):
Thursday's trading range has been £284.03 (4.31%), that's slightly above the last trading month's daily average range of £261.67. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BTCGBP.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 6321.53 during the day, BTC/GBP found support at the 20-day moving average at 6369.32. Prices broke below the key technical support level at 6530.44 (now R1), which is likely to act as resistance going forward. The last time this happened on January 11th, BTCGBP actually gained 1.22% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for BTC/GBP. Out of 423 times, BTCGBP closed higher 58.16% 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 58.39% with an average market move of 3.96%.
With seven out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are ETCUSD losing -9.63% and LTCUSD closing -6.3% lower. None of the markets managed to end the day in the green. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 19.15% and LSKBTC closing 7.06% higher. The worst performers of the day have been BTGUSD tanking -9.33% and XEMUSD closing -9.01% lower. Read more