BTCGBP breaks below key technical support level
Bitcoin/British Pound Index (BTCGBP) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
BTCGBP finished Sunday at 13890.09 losing £218.80 (-1.55%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BTCGBP as at Nov 22, 2020):
Sunday's trading range has been £838.80 (5.95%), that's above the last trading month's daily average range of £645.14. 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.
Regardless of a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle.
Prices broke below the key technical support level at 13941.95 (now R1), which is likely to act as resistance going forward. The last time this happened on November 2nd, BTCGBP actually gained 1.67% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 14281.11 where further buy stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for BTC/GBP. Out of 225 times, BTCGBP closed higher 60.89% 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 56.89% with an average market move of 4.17%.