BTGBTC ends the day on a bullish note closing near the high of the day
Bitcoin Gold/Bitcoin Index (BTGBTC) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
BTGBTC ended Saturday at 0.00053 gaining BTC0.00003 (6.0%). The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (BTGBTC as at Nov 21, 2020):
Saturday's trading range has been BTC0.00004 (8.0%), that's slightly above the last trading month's daily average range of BTC0.00003. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BTGBTC. Prices continued to consolidate within a tight trading range between 0.00049 and 0.00054 where it has been caught now for the last three trading days.
Four candlestick patterns are matching today's price action, the Bullish Closing Marubozu, the Tweezer Top and the White Candle which are known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern.
BTG/BTC found buyers again today around 0.00049 for the third trading day in a row after having found demand at 0.00049 in the previous session and at 0.00049 two days ago. The last time this happened on Wednesday, BTGBTC actually lost -5.66% on the following trading day.
Crossing above the upper Bollinger Band for the first time since August 16th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 0.00049 or signal the beginning of a strong momentum breakout leading to even higher prices.
While Gold is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for BTG/BTC. Out of 117 times, BTGBTC closed lower 52.99% 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 six trading days, showing a win rate of 67.52% with an average market move of -2.38%.