I have this idea of that the marked points(horizontal lines) will be the key areas for determining the upcoming trend of bitcoins price movement because the areas collide as in support meets resistance and resistance meets support between GOLD & the indexes S&P 500 and NASDAQ 100 whom naturally have an inverse relationship.
The reason for this thinking is because for a longer period of time i have paid attention to that when the indexes go up the market of cryptocurrency goes down and knowing that gold has a naturally inverse relationship as a form of hedge towards the traditional market i would assume identifying key points and finding a correlated area would be legitimate for making a speculative guess for the future price movement of the bitcoin.
This also means that because bitcoin moves all the other currencies in its sphere being the most dominant one all my other assumptions will revolve around either the break of the resistance for indices RED & PURPLE or the support of gold against the indices marked YELLOW
So if GOLD finds support i say there will be a reversal for bitcoins bear trend towards the bull sentiment and if Indices break the supply areas a continuation for bitcoins bear trend will emerge short to medium term.
However if any of these situations are to be played out i am biased to that GOLD will be favored in its area because of the recent news revolving around the financial markets and break of chart patterns.
Please do give me a like and or a follow as i will be updating these charts if you want to follow its development!
The reason for this thinking is because for a longer period of time i have paid attention to that when the indexes go up the market of cryptocurrency goes down and knowing that gold has a naturally inverse relationship as a form of hedge towards the traditional market i would assume identifying key points and finding a correlated area would be legitimate for making a speculative guess for the future price movement of the bitcoin.
This also means that because bitcoin moves all the other currencies in its sphere being the most dominant one all my other assumptions will revolve around either the break of the resistance for indices RED & PURPLE or the support of gold against the indices marked YELLOW
So if GOLD finds support i say there will be a reversal for bitcoins bear trend towards the bull sentiment and if Indices break the supply areas a continuation for bitcoins bear trend will emerge short to medium term.
However if any of these situations are to be played out i am biased to that GOLD will be favored in its area because of the recent news revolving around the financial markets and break of chart patterns.
Please do give me a like and or a follow as i will be updating these charts if you want to follow its development!
First picture is BTCUSD right now and second picture is GOLD, take a look at the similarities is GOLD leading the way for BTC in terms of price action?
Nothing new ever happens in the market.