BTCUSD breaks below key technical support level

Bitcoin/US Dollar Index (BTCUSD) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team


BTCUSD breaks below key technical support level
BTCUSD closes within previous day's range


BTCUSD ended Sunday at 18411.38 losing $292.68 (-1.56%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.

Daily Candlestick Chart (BTCUSD as at Nov 22, 2020):

Daily technical analysis candlestick chart for Bitcoin/US Dollar Index (BTCUSD) as at Nov 22, 2020

Sunday's trading range has been $1122.37 (6.0%), that's above the last trading month's daily average range of $879.42. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for BTCUSD.

Notwithstanding a strong opening BTC closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on November 14th, BTCUSD lost -0.81% on the following trading day.

Prices broke below the key technical support level at 18466.10 (now R1), which is likely to act as resistance going forward.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Buying might speed up should prices move above the nearby swing high at 18966.12 where further buy stops could get triggered.

Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for BTC/USD. Out of 235 times, BTCUSD closed higher 54.47% 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 60.85% with an average market move of 6.23%.

Market Conditions for BTCUSD as at Nov 22, 2020

Loading Market Conditions for BTCUSD (Bitcoin/US Dollar Index)...
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