Hello, traders!
It's been a crazy week and it's time to make a round-up on the major indices.
After passing the psychological mark of $12 000, Bitcoin started demonstrating rapid growth.
The key reasons for the growth are:
If we consider three years of Bitcoin movement, we can see how the price went into a one-week correction before continuing its growth.
The current bitcoin rally brought the price to a new trading range of $13 880 - $15 800. A similar range was formed in 2017 between the levels of $5 850 - $7 450, where the price returned later.
In the visible trading volume profile, you can clearly see the poorly traded area after $12 000, which will be filled by the price movement.
SP 500
The driver of the new round of growth in the stock market was the news about the vaccine from PFIZER. After that, liquidity began to move from fin-tech companies to the sectors of the economy that were affected worse by the Covid-19.
XAU/GOLD
Simultaneously with the growth of the stock market, participants' appetite for risk assets began to grow, which led to the dump of the gold prices by more than 100 points after securing positions in the protective asset.
So, what shall we expect now?
Based on what is written above, we can assume that the markets are preparing for a New Year's rally, which may be hampered by political instability amidst disputed election results in the United States.
Please share your thoughts on my vision in the comments below and watch out for the market!
It's been a crazy week and it's time to make a round-up on the major indices.
After passing the psychological mark of $12 000, Bitcoin started demonstrating rapid growth.
The key reasons for the growth are:
- USDT emission in the total amount of +7.5 billion between September 1, 2020, and today;
- a large number of open short positions that had to be closed by SL's, pushed the price even higher.
If we consider three years of Bitcoin movement, we can see how the price went into a one-week correction before continuing its growth.
The current bitcoin rally brought the price to a new trading range of $13 880 - $15 800. A similar range was formed in 2017 between the levels of $5 850 - $7 450, where the price returned later.
In the visible trading volume profile, you can clearly see the poorly traded area after $12 000, which will be filled by the price movement.
SP 500
The driver of the new round of growth in the stock market was the news about the vaccine from PFIZER. After that, liquidity began to move from fin-tech companies to the sectors of the economy that were affected worse by the Covid-19.
XAU/GOLD
So, what shall we expect now?
Based on what is written above, we can assume that the markets are preparing for a New Year's rally, which may be hampered by political instability amidst disputed election results in the United States.
Please share your thoughts on my vision in the comments below and watch out for the market!