Weekly Price Analysis #15 – Week 32

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Hey there bitcoiners and goldbugs, time for another weekly price update!

BTC/USD – Bears Take Control

At the time of writing, Bitcoin is trading at $6,455. The cryptocurrency has seen steady losses over the past seven days, and yesterday rebounded with an unconvincing bounce off the $6,200 region, and failed to close above resistance at $6,550.

This fall mirrors the movement of the cryptocurrency market as a whole, which has reached the lowest market cap in 2018 this week at $211.15 billion, a level not seen since November 2017, according to coinlib.io.

This descent is thought to have been triggered by the US Securities and Exchange Commission (SEC) delaying a decision on a proposed bitcoin exchange-traded fund (ETF).

While this doesn’t mean the ETF is rejected, speculators and traders hoping to profit from an approval sold their positions, sending price plummeting, despite the fact that the SolidX-VanEck proposal is just one of four waiting to be considered.

Nevertheless, the market has priced the news in, and after plunging straight through the 50 Day Moving Average (shown in blue), Bitcoin now looks to be on its way to the critical support level of $6,000.

Should bearish momentum wane, and the bulls defend this position, then a relief rally is likely to hit resistance at at $6,660, at $6,900 where it would meet the 50 Day Moving Average, or the psychological level of $7000, given a serious bullish catalyst.

If the $6,000 level doesn’t hold, then we are likely to see a drop to the pivotal $5,800 region, which hasn’t been since June.

XAU/USD – Gold Steadies After Prolonged Downturn

At the time of writing, gold is currently trading at $1,207. Since April this year, the yellow metal has been trading in a distinct downtrend.

This week, however, has provided some respite. The ongoing U.S. dollar rally has weakened, and as trade tensions between the U.S. and China continue to escalate, the price of gold has compressed into a narrow trading range between resistance near the August highs in the $1,220 region, which coincides with the 10-day moving average, and support at the 1,204 to 1,206 region.

On Thursday, following a U.S. wholesale price report that showed inflation wasn’t taking in as much slack as expected, gold prices attempted to move higher, but hit resistance at $1,217.

Looking to the future, any ease in the global trade situation is likely to put further downside pressure on gold. This would be compounded by a weakening of the Chinese Yuan, which has recently demonstrated close correlation with the metal. On the chart, immediate support can be found at the bottom of the range around the $1,205 level, a break of which would set the crucial $1,200 level into play.

On the other hand, an upside break would be likely to find resistance between $1,217 and $1,221.

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.

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