SEC provides Bitcoin bull freebie? Gold ready to roll over?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The SEC announcing a lawsuit against Binance CEO Changpeng Zhao aka CZ on Monday did nothing but provide Bitcoin participants with what was in my opinion a buying opportunity. My opinion however remains rooted in the technicals; as traders know, there will always be a next catalyst.
The below daily Bitcoin chart shows that price remains in the channel I have been presenting. Note how the top of the channel corresponds with the 50 day moving average and top of the Bollinger band range. I continue to believe a topside breakout will take Bitcoin to 31k, possibly beyond.
Traders can wait to for a breakout to occur - whereas those stacking sats and HODLing have clearly demonstrated their willingness to buy the dip, at least over the last 2 days.
I think participants in the gold market should expect a continued sideways grind. In my opinion the longer price stays under $1985/90 (solid black line in below daily chart), the higher the probability of a breakdown from the upward trendline becomes. This does not mean that I think gold is done; only aa a trader It means I am still cautious; until price action provides a clearer picture of the next trending move.
Should momentum fail to stretch all the way to the black arrow - or get there and turn back down before price gets over $1990 (at the least) that is another cautionary signal in my opinion.
Thanks and good luck.