Weekly Price Analysis #26 - Week 43 - 2018

Welcome Vaultorians, to another weekly update on the movements of Bitcoin and gold.

BTC/USD - Bitcoin Finds Balance

Bitcoin is currently trading at $6,385. The Tether-fuelled pump of last week seems long-forgotten, and the leading crypto has settled into a narrow consolidation zone between $6,370 and $6,470, with very low trading volume.

On the positive side, Bitcoin seems to have exhausted all downward momentum, but equally there is not yet enough buying power to push it upwards — any breakout on either side of this range is quickly bought up or sold off.

Even as equity markets have crumbled, Bitcoin remains steady, and after ten days of solid steady trading, some are even suggesting that bitcoin could now be considered a stable-coin! In fact, Bitcoin’s volatility has been far less than than most traditional financial indices over the last few weeks, with stock markets wiping out yearly gains.

Looking ahead, the same levels remain in play from last week: a drop below the bottom of the channel at $6,350 could bring $6100 into play, and to the upside, resistance at the channel top at $6,470 region could give way to the $6,850 region.

XAU/USD - Gold Tests Key Resistance

Gold is currently trading at $1,236. The yellow metal has continued to be buoyed by market uncertainty this week, and has now rallied up to reach a 6.5 percent gain from yearly lows.

Tuesday saw the most dramatic movement this week, with gold rising around one percent as the dollar stalled, breaking out of the bull flag to face strong resistance at the $1,240 region. Failing to break through, gold then found support around the old resistance level at the $1,229 region - which is also the low of last December 2017.

From Wednesday into Thursday, prices continued to edged higher but stayed in a tight range below the resistance, with any strong gains capped by a continuing rise in the USD dollar as news emerged that further rate hikes might be in store, even as Trump voices his discontent with the FED.

Looking ahead, a short-term uptrend is confirmed by a cross of the 20-day moving average (blue) with the 50-day moving average (orange). To get any real momentum, this would need cleanly break through resistance at the $1,240 region, a close above which would set $1,266 in sight.

Should we move lower, support could be found at the bottom of the previous channel at $1,221, and potentially at the old resistance level around $1,209.

Disclaimer: This information is not financial advice, and should not be treated as a recommendation to buy or sell. It is to be used for educational purposes only.