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Are Bitcoin bulls about to join the gold market grind

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Featuring views and opinions written by market professionals, not staff journalists.

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Gold spot prices have rallied to $1930. The chart below is an update to the re-occurring chart I have been showing on the 4-hour time frame. Note how price is finding resistance exactly at the minor trendline within the channel. Prudent traders could be satisfied with the quick win from $1905.  

That said, the adage is to let a winning trade play out and the weekly chart displayed below is showing signs that a turn maybe near, with momentum about flat-lining and price still well supported around the $1900 level. If you are a stacker and are prepared to be wrong in the event of another leg down to $1850, this may be a spot to add a tranche. Regular readers will know that my level of bullishness at a low is almost directly inversely correlated to the level of fear at said hypothetical low.

Finally, again, Bitcoin; shown below on a weekly timeframe (logarithmic).

I still see no reason not to own exposure to Bitcoin; past volatility clearly indicates a very plausible path to a 6-digit price over the long term – especially if Bitcoin is ready to begin climbing (perhaps quickly?) what is now its fourth wall of worry in 12 years.

Thanks, and have a great week.

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.