BTGBTC unable to break through key resistance level
Bitcoin Gold/Bitcoin Index (BTGBTC) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
BTGBTC finished Saturday at 0.00096 losing BTC0.00002 (-2.04%) on high volume. 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 May 23, 2020):
Saturday's trading range has been BTC0.00004 (4.08%), that's slightly above the last trading month's daily average range of BTC0.00004. 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 slightly lower than usual for BTGBTC.
Unable to break through the key technical resistance level at 0.00098 (R1), BTG/BTC closed below it after spiking up to 0.00099 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on May 14th, BTGBTC actually gained 2.13% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 0.00093 where further sell stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for BTG/BTC. Out of 145 times, BTGBTC closed lower 55.86% 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 75.17% with an average market move of -5.33%.
With five out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and LTCUSD closing -0.81% lower. On the flipside the best performers have been ETCUSD closing 1.55% higher and BTCUSD gaining 0.23%. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 10.84% and XVGUSD closing 5.05% higher. The worst performers of the day have been HSRBTC tanking -9.88% and ARDRBTC closing -9.27% lower. Read more