BTGBTC closes lower for the 2nd day in a row
Bitcoin Gold/Bitcoin Index (BTGBTC) Technical Analysis Report for Jan 17, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BTGBTC ended the week 69.88% higher at 0.00141 after losing BTC0.00009 (-6.0%) today. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BTGBTC as at Jan 17, 2020):
Friday's trading range has been BTC0.00018 (12.0%), that's slightly below the last trading month's daily average range of BTC0.00018. 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 BTGBTC.
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 Black Candle.
Prices are trading close to the key technical support level at 0.00135 (S1). After having been unable to move lower than 0.00135 in the previous session, Gold found buyers again around the same price level today at 0.00136. The last time this happened on Tuesday, BTGBTC gained 7.55% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 0.00092.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 0.00135 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for BTG/BTC. Out of 238 times, BTGBTC closed lower 55.04% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after seven trading days, showing a win rate of 67.23% with an average market move of -1.21%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETCUSD gaining 20.96% and BCHUSD closing 12.02% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been ZECUSD surging 20.85% and ZECBTC closing 18.86% higher. The worst performers of the day have been DASHBTC tanking -12.93% and DASHUSD closing -11.06% lower. Read more