BTGUSD closes within prior day's range after lackluster session
Bitcoin Gold/US Dollar Index (BTGUSD) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
BTGUSD ended Saturday at 7.66 edging higher $0.03 (0.39%) on low volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BTGUSD as at Oct 17, 2020):
Saturday's trading range has been $0.09 (1.18%), that's far below the last trading month's daily average range of $0.24. 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 lower than usual for BTGUSD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, the market managed to close higher but below the previous day's open, forming a bullish Harami Candle. The last time this candlestick pattern showed up on Thursday, BTGUSD actually lost -2.68% on the following trading day.
Prices are trading close to the key technical support level at 7.54 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 7.54 where further sell stops might get activated. Further selling could move prices lower should the market test September's close-by low at 7.40.
Among the two 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 429 times, BTGUSD closed lower 51.75% 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 58.74% with an average market move of -2.21%.
With four out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 0.81% and BTCUSD closing 0.37% higher. On the flipside the worst performers have been BCHUSD closing -2.05% lower and LTCUSD losing -1.43%. Looking at the other Minor Cryptocurrencies, the winners of the day have been WAVESUSD surging 8.14% and WAVESBTC closing 7.59% higher. The worst performers of the day have been BCNUSD tanking -10.94% and BCHBTC closing -2.26% lower. Read more