BTCUSD closes higher for the 6th day in a row
Bitcoin/US Dollar Index (BTCUSD) Technical Analysis Report for Oct 22, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, BTCUSD ended Thursday at 12990.25 gaining $177.14 (1.38%) on high volume. Today's close at 12990.25 marks the highest recorded closing price since January 15, 2018. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BTCUSD as at Oct 22, 2020):
Thursday's trading range has been $496.95 (3.88%), that's above the last trading month's daily average range of $332.05. 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.
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.
Prices are trading close to the key technical resistance level at 13236.39 (R1). After having been unable to move above 13236.39 in the prior session, BTC ran into sellers again around the same price level today, failing to move higher than 13197.69. The last time this happened on October 14th, BTCUSD actually gained 0.69% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 11377.92.
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 close-by swing high at 13236.39 where further buy stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for BTC/USD. Out of 375 times, BTCUSD closed higher 56.00% 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 68.27% with an average market move of 12.30%.