XVGBTC runs into sellers around 0.00000037 for the third day in a row
Verge/Bitcoin Index (XVGBTC) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
XVGBTC finished the week -5.26% lower at 0.00000036 after losing BTC0.00000001 (-2.7%) today.
Daily Candlestick Chart (XVGBTC as at Oct 23, 2020):
Friday's trading range has been BTC0.00000002 (5.41%), that's slightly below the last trading month's daily average range of BTC0.00000002. 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 higher than usual for XVGBTC.
One bullish candlestick pattern matches today's price action, the Last Engulfing Bottom Pattern. The last time a Last Engulfing Bottom Pattern showed up on Tuesday, XVGBTC actually lost -2.70% on the following trading day.
Verge ran into sellers again today around 0.00000037 for the third trading day in a row after having found sellers at 0.00000037 in the previous session and at 0.00000037 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 0.00000035 where further sell stops could get triggered. With prices trading close to this year's low at 0.00000034, downside momentum might speed up should XVG/BTC break out to new lows for the year.
Among the four 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 XVG/BTC. Out of 644 times, XVGBTC closed lower 41.93% 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 43.63% with an average market move of 0.45%.