BTGBTC closes within previous day's range
Bitcoin Gold/Bitcoin Index (BTGBTC) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
BTGBTC finished the week -8.96% lower at 0.00061 after gaining BTC0.00001 (1.67%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BTGBTC as at Oct 23, 2020):
Friday's trading range has been BTC0.00003 (5.0%), that's above the last trading month's daily average range of BTC0.00002. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BTGBTC.
Notwithstanding a weak opening the cryptocurrency managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on October 18th, BTGBTC actually lost -1.49% on the following trading day.
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 0.00069.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the three 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. While it is usually interpreted as bullish, it has actually shown to be bearish for BTG/BTC. Out of 28 times, BTGBTC closed lower 67.86% 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 60.71% with an average market move of -3.50%.