BTGBTC breaks below 50-day moving average for the first time since January 10th
Bitcoin Gold/Bitcoin Index (BTGBTC) Technical Analysis Report for Feb 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BTGBTC finished Sunday at 0.00110 losing BTC0.00007 (-5.98%). Today's close at 0.00110 marks the lowest recorded closing price since January 13th. Closing below Saturday's low at 0.00115, the market confirmed its breakout through the previous session low after trading up to BTC0.00015 below it intraday.
Daily Candlestick Chart (BTGBTC as at Feb 16, 2020):
Sunday's trading range has been BTC0.00019 (16.24%), that's far above the last trading month's daily average range of BTC0.00011. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for BTGBTC.
After trading as low as 0.00100 during the day, Gold found support at the 200-day moving average at 0.00103. The last time this happened on January 19th, BTGBTC gained 9.60% on the following trading day. The cryptocurrency closed below the 50-day moving average at 0.00112 for the first time since January 10th.
Crossing below the lower Bollinger Band for the first time since December 23, 2019, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 0.00124 or signal the beginning of a strong momentum breakout leading to even lower prices.
Although BTG/BTC is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 200" stand out. Its common bullish interpretation has been confirmed for BTG/BTC. Out of 3 times, BTGBTC closed higher 100.00% 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 66.67% with an average market move of 5.62%.
With seven out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are ETCUSD losing -8.42% and BCHUSD closing -7.51% lower. None of the markets managed to end the day in the green. Looking at the other Minor Cryptocurrencies, the winner of the day has been BTCCNY surging 3.36%. The worst performers of the day have been HSRBTC tanking -13.51% and BCNUSD closing -12.08% lower. Read more