BTCUSD still stuck within tight trading range
Bitcoin/US Dollar Index (BTCUSD) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
BTCUSD finished Monday at 13069.43 gaining $28.22 (0.22%). Trading up to $244.16 lower after the open, Bitcoin managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on October 17th, BTCUSD gained 1.28% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BTCUSD as at Oct 26, 2020):
Monday's trading range has been $444.74 (3.41%), that's slightly above the last trading month's daily average range of $370.08. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for BTCUSD. Prices continued to consolidate within a tight trading range between 12700.74 and 13346.70 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns.
Unable to break through the key technical resistance level at 13236.39 (R1), BTC/USD closed below it after spiking up to 13241.79 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
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 13346.70 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish High-Wave Candle" stand out. Its common bullish interpretation has been confirmed for BTC/USD. Out of 36 times, BTCUSD closed higher 61.11% 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 63.89% with an average market move of 3.59%.