BTCUSD finds buyers at key support level
Bitcoin/US Dollar Index (BTCUSD) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, BTCUSD finished Saturday at 18704.06 gaining $31.28 (0.17%). Today's close at 18704.06 marks the highest recorded closing price since December 18, 2017. Trading up to $313.72 lower after the open, BTC managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BTCUSD as at Nov 21, 2020):
Saturday's trading range has been $607.06 (3.25%), that's below the last trading month's daily average range of $853.64. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for BTCUSD.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 18359.06 earlier during the day, the market bounced off the key technical support level at 18466.10 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on November 15th, BTCUSD gained 4.74% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 16086.14.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. Its common bullish interpretation has been confirmed for BTC/USD. Out of 215 times, BTCUSD closed higher 65.58% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 67.44% with an average market move of 17.87%.