Weekly Price Analysis #45 – Week 11 – 2019

Welcome Vaultorians, to your weekly price analysis on bitcoin and gold!

BTC/USD – How Long Can Bitcoin’s Balancing Act Last?

Bitcoin is now trading at $3,878, with little change since last week.

In fact, bitcoin has now traded in a $200 dollar range for the last two weeks. Any attempt to break out of this area has been met with fierce buying and selling. This is evidenced by the long-legged doji candle — or ‘the Darth Maul candle’ as it has become known on Crypto Twitter — that bitcoin printed on the daily chart on Thursday.

After this quick whipsaw, which doubtless liquidated all the traders whose stop orders had been placed either side of the range, the price was once again stuck back in the same area.

For altcoin traders, this stability is a boon — sending funds into the rest of the market and creating significant gains in small market cap coins as bitcoin sits in zen-like equilibrium.

After such an extended period of price constriction, a big move could be expected once we finally break out. If the price can manage to close above the top of the range in the $3,950 region, then we could expect a run all the way to $4,100.

On the bearish side, if we don’t manage to capture support at the $3,950 level, we are likely to fall back down and revisit the bottom of the range in the low $3,000 region.

XAU/USD – Gold Flirts With $1,300

Gold is now changing hands for $1,303, an increase of around 0.75 percent since the last update.

The week started off on a bullish note, and gold gained enough momentum on Tuesday to break through the key level of $1,300.

But, this level couldn’t hold, and the metal tumbled on Thursday — giving back all of its gains to the market and dropping to sit on the support level at $1,293.

This drop was catalysed by the release of economic reports from the US, particularly jobless data, which although weak, was not weak enough to suggest that the Fed would keep interest rates at the same level. Thus traders put a bid under the dollar in anticipation of potential rate hikes, and, as an inversely correlated asset, gold was pushed down.

As of this morning, gold has been pushing back up, and if we can now manage to hold above the $1,300 level, the future still looks bright for gold – which still retains a bullish market structure on higher time frames.

At present, gold is facing immediate resistance at $1,305, beyond which lies more resistance at $1,312. If this level can be cracked, then we are likely to test again the recent highs of $1,350.

If we can’t manage to hold the $1,300 level, then further support can be found at $1,295 and the key level of $1,280.

Disclaimer: This content is for educational purposes only and does not constitute financial advice. It is very important to do your own analysis before making any investment.