BTGBTC breaks below key technical support level
Bitcoin Gold/Bitcoin Index (BTGBTC) Technical Analysis Report for Jan 18, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, BTGBTC finished Saturday at 0.00127 losing BTC0.00014 (-9.93%). Closing below Friday's low at 0.00136, BTG/BTC confirmed its breakout through the previous session low after trading up to BTC0.00014 below it intraday.
Daily Candlestick Chart (BTGBTC as at Jan 18, 2020):
Saturday's trading range has been BTC0.00028 (19.86%), that's slightly above the last trading month's daily average range of BTC0.00020. 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 BTGBTC.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
Prices broke below the key technical support level at 0.00135 (now R1), which is likely to act as resistance going forward. After having been unable to move above 0.00154 in the prior session, the cryptocurrency ran into sellers again around the same price level today, failing to move higher than 0.00150. The last time this happened on January 12th, BTGBTC actually gained 3.61% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Its common bearish interpretation has been confirmed for BTG/BTC. Out of 81 times, BTGBTC closed lower 62.96% 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 10 trading days, showing a win rate of 70.37% with an average market move of -6.12%.
With four out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are ETCUSD losing -13.15% and BCHUSD closing -3.84% lower. On the flipside the best performers have been ETHUSD closing 3.26% higher and XRPUSD gaining 2.88%. Looking at the other Minor Cryptocurrencies, the winners of the day have been STEEMBTC surging 27.54% and BCNUSD closing 14.61% higher. The worst performers of the day have been ZECBTC tanking -13.54% and ZECUSD closing -13.32% lower. Read more