Hope for gold on the horizon. Bitcoin fueling up?
The below 4-hour gold chart is yet another updated version of the reoccurring trend:
Although I think traders engaged in trying to time the channel should probably be positioned for a bounce here, the trend remains sideways to downward. I remain on the lookout for signs of a capitulation sell-off. I have also noticed a few mainstream articles and popular pundits calling for the uselessness of gold (again) this week; this is the type of headline that puts a blip on my contrarian radar. That said, in my opinion, a lower low today or tomorrow in the gold price should be taken at face value – a sign that $1900 is ready to fall on the way to $1880ish.
Update on the 4-hour Bitcoin chart:
Price continues to consolidate in the higher range post-breakout. Note that bulls have absorbed selling pressure in stride; momentum on the timeframe has stayed oversold while the price has held up. In my opinion, it stands to reason that the breakout of the triangle will occur to the topside (which aligns with the top of the Bollinger band range) and lead to a continuation of the upward trend on daily and weekly timeframes.
I am looking out for price to get over 32k before momentum on the above chart comes down from its next overbought reading.
Thanks, and good luck
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