BTCUSD closes within previous day's range after lackluster session
Bitcoin/US Dollar Index (BTCUSD) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
BTCUSD ended Saturday at 11367.65 edging higher $41.40 (0.37%) on low volume. Trading up to $55.56 lower after the open, the cryptocurrency 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 in a lackluster session.
Daily Candlestick Chart (BTCUSD as at Oct 17, 2020):
Saturday's trading range has been $139.32 (1.23%), that's far below the last trading month's daily average range of $267.40. 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 BTCUSD. Prices continued to consolidate within a tight trading range between 11224.89 and 11607.59 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical support level at 11173.88 (S1). Prices are trading close to the key technical resistance level at 11533.93 (R1). The market found buyers again today around 11270.69 for the third trading day in a row after having found demand at 11224.89 in the previous session and at 11269.05 two days ago. The last time this happened on Thursday, BTCUSD actually lost -1.58% on the following trading day.
BTC/USD shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the nearby swing high at 11607.59 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 11224.89 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for BTC/USD. Out of 608 times, BTCUSD closed higher 51.48% 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 59.38% with an average market move of 4.53%.
With three of the other Major Cryptocurrencies closing higher and three closing lower today, the winners of the day are ETHUSD surging 0.81% and ETCUSD gaining 0.36%. On the flipside the worst performers have been BCHUSD closing -2.05% lower and LTCUSD losing -1.43%. Looking at the Minor Cryptocurrencies, the winners of the day have been WAVESUSD surging 8.14% and WAVESBTC closing 7.59% higher. The worst performers of the day have been BCNUSD tanking -10.94% and BCHBTC closing -2.26% lower. Read more