BTCUSD closes within previous day's range
Bitcoin/US Dollar Index (BTCUSD) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
BTCUSD finished the week 12.37% higher at 12937.20 after losing $53.05 (-0.41%) today. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BTCUSD as at Oct 23, 2020):
Friday's trading range has been $299.20 (2.3%), that's slightly below the last trading month's daily average range of $342.27. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for BTCUSD.
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 bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on July 30th, BTCUSD actually gained 2.15% on the following trading day.
Prices are trading close to the key technical resistance level at 13236.39 (R1). After having been unable to move lower than 12700.74 in the previous session, BTC/USD found buyers again around the same price level today at 12732.62.
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 11497.18.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby 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 68.00% with an average market move of 12.05%.