BTCGBP unable to break through key resistance level
Bitcoin/British Pound Index (BTCGBP) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BTCGBP finished Sunday at 8922.47 gaining £88.77 (1.0%) on low volume. Closing above Saturday's high at 8896.41, the market confirmed its breakout through the prior session high after trading up to £85.21 above it intraday.
Daily Candlestick Chart (BTCGBP as at Oct 18, 2020):
Sunday's trading range has been £168.06 (1.9%), that's slightly below the last trading month's daily average range of £195.70. 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 BTCGBP. Prices continued to consolidate within a tight trading range between 8691.77 and 8992.72 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a White Candle showed up on October 11th, BTCGBP gained 1.15% on the following trading day.
Unable to break through the key technical resistance level at 8971.43 (R1), the cryptocurrency closed below it after spiking up to 8981.62 earlier during the day. The failure to close above the resistance might increase that levels significance 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 nearby swing high at 8992.72 where further buy stops might get activated. Further buying could move prices higher should the market test September's close-by high at 9056.19.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for BTC/GBP. Out of 738 times, BTCGBP closed higher 52.44% 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 61.38% with an average market move of 6.43%.
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