BTCGBP closes above its opening price after recovering from early selling pressure
Bitcoin/British Pound Index (BTCGBP) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
BTCGBP ended Monday at 10064.94 gaining £60.39 (0.6%). Trading up to £151.80 lower after the open, BTC/GBP managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BTCGBP as at Oct 26, 2020):
Monday's trading range has been £331.95 (3.32%), that's slightly above the last trading month's daily average range of £270.87. 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 strongly higher than usual for BTCGBP. Prices continued to consolidate within a tight trading range between 9852.75 and 10240.57 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns. The last time a Bullish Spinning Top showed up on October 9th, BTCGBP gained 2.11% on the following trading day.
Unable to break through the key technical resistance level at 10095.75 (R1), the market closed below it after spiking up to 10184.70 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 10240.57 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish High-Wave Candle" stand out. Its common bullish interpretation has been confirmed for BTC/GBP. Out of 45 times, BTCGBP closed higher 57.78% 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 60.00% with an average market move of 5.48%.