Hello Vaultorians, and welcome to another weekly price analysis!
BTC/USD – Bitcoin on the Stairway to Heaven
Bitcoin is now trading at $6,273 and has continued to show strength this week, gaining around 14 percent since the last update.
This comes despite the presence of significant resistance at $6,000, which has been recaptured despite significant uncertainty in the crypto markets – Bitfinex has been sued, Binance has been hacked, and the Tether saga has continued.
Nevertheless, price action continues to be bullish and bitcoin is now continuing to create higher lows and lower highs. As the price pushes up in this stair-stepping way, buyers are stepping in with orders at the immediate levels below.
Until now, this has prevented any pullback, as Each drop then falls back to the lower stair, where buyers ready waiting to catch falling price and push it back up.
The next area of resistance for bitcoin is at $6,350 – $6,400 – a region that saw significant trading in 2018 . A flip to support above $6400 would be very bullish, and is likely to induce FOMO among those same traders whose short positions helped fuel the rally of the last two weeks.
If we do pullback from here, support is likely to be found at $6,000, or at $5,700.
XAU/USD – Gold Boosted by Trade Talk Uncertainty
Gold is trading positive on the week, and is up one percent as risk appetite falls following an escalation of the US-China trade conflict.
On Wednesday, Trump said that China “broke the deal” in trade talks and would face an increase of tariffs from 10 to 25 percent on the $200 billion of Chinese goods imported to the US.
This sent a tremor through the stock market, and pushed gold up on increased safe haven appeal, but the rally was short lived as Trump then claimed to have received a “beautiful” letter from China Premier Xi Jinping, suggesting once again that the situation could soon be resolved.
This capped upside on gold, which has since remained relatively still as traders await the start of more trade talks on Friday, which are likely to set the tone for the next few days of trading in gold.
On the charts , the metal is now trading in a descending channel, with a bearish trend-line at the top that is likely to act as resistance to any attempt to move up. This intersects with further horizontal resistance at the former support level of $1,289, representing the first hurdle for bitcoin to jump on the way back to previous highs.
If we move lower, which might be a possibility if US-China negotiations go well on Friday, then the next stop is at $1,277 region, before the previous double bottom support at $1,266.
Disclaimer: This content is for educational purposes only and does not constitute financial advice. It is very important to do your own analysis before trading or investing.