JPow Shakes Markets: Bitcoin and Gold on the Radar
The combination of yesterday's Super Tuesday with Trump and Biden again at the top of the list, together with Jerome Powell's announcement, generated a significant rebound in both gold and Bitcoin against the US dollar. The hamburger country's indexes experienced a notable drop caused as we say by the Federal Reserve announcement, which caused a rebound effect in assets considered as a store of value, such as gold and Bitcoin, during the market opening. These effects have shown that inflation plays an important role against these two assets in particular that are currently trending.
Bitcoin hit a high of $69,087.01 before pulling back to the $59,799.67 area at the close of the U.S. market, showing relative strength. During Asian market hours, a correction to around $64,900 was seen, but continued institutionalized buying is pushing Bitcoin towards a new zone around $76,000. The RSI divergence indicator, tells us that Bitcoin is oversold by 46.42%, suggesting the possibility of further upside momentum as soon as new opportunities present themselves in the market with very volatile and strong moves. Meanwhile, the expectation this week is for Bitcoin to remain in a sideways range between $59,799 and yesterday's new highs. In addition, the formation of a triple bell in trading volume suggests a new Checkpoint (POC) around $56,934.50, versus the previous checkpoint of $52,000, representing an increase in the value of this asset and its checkpoint shift to higher highs soon in the area of the sideways range we have indicated.
On the other hand, gold reached its highs within half an hour of the previous high, reaching $2,139.69, and subsequently stabilized. Unlike Bitcoin, gold's upward correction has been relatively moderate rising $30 in one session, now finding itself at the bottom of a channel with several floors around $2,124.25, its previous level being around $2,111. If this level holds, we may see an upside breakout attempt in the coming days looking for a break of highs. Gold's institutional structure seems to follow a similar pattern to Bitcoin, suggesting challenging times for the indices and equity market until significant corrections occur.
Ion Jauregui - AT Analyst
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Bitcoin hit a high of $69,087.01 before pulling back to the $59,799.67 area at the close of the U.S. market, showing relative strength. During Asian market hours, a correction to around $64,900 was seen, but continued institutionalized buying is pushing Bitcoin towards a new zone around $76,000. The RSI divergence indicator, tells us that Bitcoin is oversold by 46.42%, suggesting the possibility of further upside momentum as soon as new opportunities present themselves in the market with very volatile and strong moves. Meanwhile, the expectation this week is for Bitcoin to remain in a sideways range between $59,799 and yesterday's new highs. In addition, the formation of a triple bell in trading volume suggests a new Checkpoint (POC) around $56,934.50, versus the previous checkpoint of $52,000, representing an increase in the value of this asset and its checkpoint shift to higher highs soon in the area of the sideways range we have indicated.
On the other hand, gold reached its highs within half an hour of the previous high, reaching $2,139.69, and subsequently stabilized. Unlike Bitcoin, gold's upward correction has been relatively moderate rising $30 in one session, now finding itself at the bottom of a channel with several floors around $2,124.25, its previous level being around $2,111. If this level holds, we may see an upside breakout attempt in the coming days looking for a break of highs. Gold's institutional structure seems to follow a similar pattern to Bitcoin, suggesting challenging times for the indices and equity market until significant corrections occur.
Ion Jauregui - AT Analyst
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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