Bitcoin bulls are producing the breakout that gold bulls did not. Yesterday, I showed a chart formation in gold identical to the Bitcoin chart below, the difference being the direction of the breakout.
As I have written, we cannot tell the future, but we can determine probabilities and let trendlines be a guide.
Momentum looks to be just starting to turn up as well, making the 39500 target look increasingly probable.
From a weekly perspective, again, I see no reason not to be long Bitcoin over the long term (as a speculative play).
Weekly momentum looks like it's about to stay stuck in the overbought position, too. This is another point in the bullish column, in my opinion.
Gold has continued lower toward its most obvious support zone. I think bulls will have an opportunity to buy this dip in the next few trading days as the price tests the bottom end of the box, which coincides with the bottom range of the Bollinger band. I think a 'V' reversal to the all-time high is increasingly less likely, but I do expect gold to get there regardless; some sideways action going into Christmas while stock bulls celebrate, would not surprise me.
Thanks, and have a great day,
