BTCUSD pushes through Thursday's high
Bitcoin/US Dollar Index (BTCUSD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BTCUSD finished the month 24.26% higher at 11352.72 after gaining $239.06 (2.15%) today. Today's close at 11352.72 marks the highest recorded closing price since August 12, 2019. Closing above Thursday's high at 11182.76, the market confirmed its breakout through the previous session high after trading up to $271.35 above it intraday.
Daily Candlestick Chart (BTCUSD as at Jul 31, 2020):
Friday's trading range has been $472.24 (4.25%), that's above the last trading month's daily average range of $309.08. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for BTCUSD.
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.
Unable to break through the key technical resistance level at 11397.48 (R1), the cryptocurrency closed below it after spiking up to 11454.11 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 9806.82. The last time this happened on July 24th, BTCUSD actually gained 1.66% 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 Technical Indicators based market condition "Close crossed below the upper Bollinger Band" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for BTC/USD. Out of 142 times, BTCUSD closed higher 61.27% 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 68.31% with an average market move of 12.68%.
With six out of the other six Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are XRPUSD gaining 6.3% and ETHUSD closing 3.45% higher. None of the markets ended the day in the red. Looking at the Minor Cryptocurrencies, the winners of the day have been ETHCNY surging 8.84% and LTCCNY closing 7.87% higher. The worst performers of the day have been SCBTC tanking -10.34% and PIVXBTC closing -5.56% lower. Read more