BTGUSD misses to close above 100-day moving average
Bitcoin Gold/US Dollar Index (BTGUSD) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
BTGUSD ended Saturday at 8.83 losing $0.16 (-1.78%) on high volume. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BTGUSD as at May 23, 2020):
Saturday's trading range has been $0.30 (3.34%), that's below the last trading month's daily average range of $0.45. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BTGUSD.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Thursday, BTGUSD actually gained 4.53% on the following trading day.
Prices are trading close to the key technical support level at 8.66 (S1). After spiking up to 9.07 during the day, the market found resistance at the 100-day moving average at 8.99.
BTG/USD shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the nearby swing low at 8.50 where further sell stops could get activated. As prices are trading close to May's low at 8.40, downside momentum might speed up should Gold mark new lows for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for BTG/USD. Out of 363 times, BTGUSD closed lower 52.34% 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 60.61% with an average market move of -2.78%.
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