XVGBTC closes within prior day's range after lackluster session
Verge/Bitcoin Index (XVGBTC) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
XVGBTC finished Sunday at 0.00000038 flat. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (XVGBTC as at Oct 18, 2020):
Sunday's trading range has been BTC0.00000001 (2.63%), that's far below the last trading month's daily average range of BTC0.00000002. 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 XVGBTC. Prices continued to consolidate within a tight trading range between 0.00000037 and 0.00000039 where it has been caught now for the last three trading days.
Even with a weak opening Verge managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, four candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern and the Southern Doji which are both known as bullish patterns, one bearish pattern, the Gravestone Doji and one neutral pattern, the Doji. The last time a Last Engulfing Bottom Pattern showed up on October 12th, XVGBTC gained 2.63% on the following trading day.
The market ran into sellers again today around 0.00000039 for the third trading day in a row after having found sellers at 0.00000039 in the previous session and at 0.00000039 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 0.00000037 where further sell stops could get activated. With prices trading close to this year's low at 0.00000034, downside momentum might accelerate should the cryptocurrency break out to new lows for the year. As prices are trading close to October's high at 0.00000042, upside momentum could speed up should XVG mark new highs for the month. As prices are trading close to October's low at 0.00000036, downside momentum might accelerate should XVG/BTC mark new lows for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for XVG/BTC. Out of 641 times, XVGBTC closed lower 41.81% 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 two trading days, showing a win rate of 43.53% with an average market move of 0.46%.
With six out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 2.69% and BCHUSD closing 1.76% higher. On the flipside the worst performer has been ETCUSD closing -0.36% lower. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 13.16% and VETBTC closing 5.15% higher. The worst performers of the day have been WAVESBTC tanking -5.27% and WAVESUSD closing -4.08% lower. Read more