Long gold, short Bitcoin for a trade?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The gold/bitcoin ratio has fallen off a cliff over the past 5 trading days. Below is a 4-hour chart displaying the breakdown point from support, and a Bollinger band crash with momentum oversold.
Hence the basis for the trade.
Stackers who haven’t pulled the trigger yet; this maybe the extent of dips on the way to the all-time high. Below is the 4-hour gold chart illustrating support, as well as the two last candles which thus far are looking good for bulls in my opinion.
Is this Bitcoin move passing you by? I think prices can drop all the way back down to 31500ish, and the action would still be bullish on a weekly time frame. That said I would be looking to cover any Bitcoin shorts at that level, and possibly preparing to add to a stack.
That upside breach of the 200-week moving average is turning out to be quite significant - and in short order.