BTGUSD unable to break through key resistance level
Bitcoin Gold/US Dollar Index (BTGUSD) Technical Analysis Report for Aug 01, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BTGUSD ended Saturday at 10.43 gaining $0.15 (1.46%) on high volume. Today's close at 10.43 marks the highest recorded closing price since June 30th. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BTGUSD as at Aug 01, 2020):
Saturday's trading range has been $0.96 (9.34%), that's above the last trading month's daily average range of $0.69. 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 BTGUSD.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on Tuesday, BTGUSD gained 0.60% on the following trading day.
Unable to break through the key technical resistance level at 10.63 (R1), the cryptocurrency closed below it after spiking up to 10.97 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 9.41.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to June's high at 11.45 we could see further upside momentum if potential buy stops at the level get activated.
Among the four 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/USD. Out of 125 times, BTGUSD closed lower 59.20% 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 63.20% with an average market move of -4.29%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are XRPUSD gaining 12.04% and ETHUSD closing 11.71% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been ZECUSD surging 19.59% and DOGEUSD closing 15.6% higher. The worst performers of the day have been STRATBTC tanking -4.08% and ARDRBTC closing -4.0% lower. Read more