BTGBTC ends the day indecisive
Bitcoin Gold/Bitcoin Index (BTGBTC) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
BTGBTC finished Sunday at 0.00067 flat on low volume. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (BTGBTC as at Oct 18, 2020):
Sunday's trading range has been BTC0.00001 (1.49%), that's below the last trading month's daily average range of BTC0.00002. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BTGBTC.
Regardless of a weak opening Gold managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, five candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern, the Southern Doji and the Tweezer Bottom which are known as bullish patterns, one bearish pattern, the Gravestone Doji and one neutral pattern, the Doji.
BTG/BTC was bought again around 0.00067 after having seen lows at 0.00067, 0.00067 and 0.00067 in the last three trading sessions. Obviously there is something going on at that level.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 0.00071. The last time this happened on September 17th, BTGBTC actually lost -1.32% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 0.00066 where further sell stops could get activated.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for BTG/BTC. Out of 27 times, BTGBTC closed lower 66.67% 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 62.96% with an average market move of -3.50%.
With six out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 2.69% and BCHUSD closing 1.76% higher. On the flipside the worst performer has been ETCUSD closing -0.36% lower. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 13.16% and VETBTC closing 5.15% higher. The worst performers of the day have been WAVESBTC tanking -5.27% and WAVESUSD closing -4.08% lower. Read more