BTCUSD finds buyers at key support level
Bitcoin/US Dollar Index (BTCUSD) Technical Analysis Report for Oct 21, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, BTCUSD finished Wednesday at 12813.11 surging $891.33 (7.48%) on high volume. This is the biggest single-day gain in over two months. Today's close at 12813.11 marks the highest recorded closing price since June 26, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 12047.73, BTC/USD confirmed its breakout through the prior session high after trading up to $1188.66 above it intraday.
Daily Candlestick Chart (BTCUSD as at Oct 21, 2020):
Wednesday's trading range has been $1335.88 (11.21%), that's far above the last trading month's daily average range of $321.22. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for BTCUSD.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 11900.51 earlier during the day, BTC bounced off the key technical support level at 11912.62 (S2). The failure to close below the support might increase that levels importance as support going forward.
Crossing above the upper Bollinger Band for the first time since October 12th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 11257.24 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on October 9th, BTCUSD gained 2.20% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. Its common bullish interpretation has been confirmed for BTC/USD. Out of 203 times, BTCUSD closed higher 65.02% 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 67.98% with an average market move of 17.97%.