BTCUSD still stuck within tight trading range
Bitcoin/US Dollar Index (BTCUSD) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BTCUSD ended Sunday at 11513.33 gaining $145.68 (1.28%) on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Saturday's high at 11410.01, Bitcoin confirmed its breakout through the prior session high after trading up to $103.67 above it intraday.
Daily Candlestick Chart (BTCUSD as at Oct 18, 2020):
Sunday's trading range has been $156.43 (1.38%), that's below the last trading month's daily average range of $260.10. 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.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bullish Short Candle showed up on October 7th, BTCUSD gained 2.41% on the following trading day.
Prices are trading close to the key technical resistance level at 11533.93 (R1).
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 nearby swing high at 11607.59 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 11224.89 where further sell stops might get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for BTC/USD. Out of 764 times, BTCUSD closed higher 52.88% 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 62.17% with an average market move of 7.64%.
With five out of the other six Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 2.69% and BCHUSD closing 1.76% higher. On the flipside the worst performer has been ETCUSD closing -0.36% lower. Looking at the Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 13.16% and VETBTC closing 5.15% higher. The worst performers of the day have been WAVESBTC tanking -5.27% and WAVESUSD closing -4.08% lower. Read more