BTCUSD closes within prior day's range after lackluster session
Bitcoin/US Dollar Index (BTCUSD) Technical Analysis Report for Jul 03, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BTCUSD finished the week -0.59% lower at 9066.46 after losing $26.34 (-0.29%) today. Trading $34.25 higher after the open, BTC/USD was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 21st, BTCUSD actually gained 4.29% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BTCUSD as at Jul 03, 2020):
Friday's trading range has been $79.67 (0.88%), that's far below the last trading month's daily average range of $261.80. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BTCUSD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might speed up should prices move above the close-by swing high at 9299.67 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 8954.67 where further sell stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for BTC/USD. Out of 420 times, BTCUSD closed higher 57.14% 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 58.57% with an average market move of 6.19%.
With five out of the other six Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are EOSUSD gaining 2.54% and XRPUSD closing 0.86% higher. On the flipside the worst performer has been ETHUSD closing -0.59% lower. Looking at the Minor Cryptocurrencies, the winners of the day have been VETBTC surging 7.62% and ICXBTC closing 6.57% higher. The worst performers of the day have been BTGUSD tanking -8.19% and BTGBTC closing -5.0% lower. Read more