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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.

Commentaries & Views

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.

By

Jonathan Da Silva

Contributing to kitco.com

Contact jdasilva@kitco.com
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.