Bullish outlook on the Gold Imposter
My fundamental analysis stays overwhelmingly bullish as bitcoin, like the Dollar, is holding its reputation of being a safe haven currency along with gold. This is also while silver gets pumped 11.5 percent to its highest level in eight years by wallstreetbets and might not get dumped playing toward the risk-on sentiment seen world wide. That being said, long term sentiment of the dollar remains bearish because more stimulus is expected. The Fed has yet to change major fundamentals for the new year, stating they would leave interest rates at near-zero and continue making large bond purchases. More stimulus check means more for crypto :)
My technical analysis is not what I and many others expected. As history always repeats itself, we saw a staircase drop to a strong bleed after the $20,000 rally end of 2017 beginning 2018. Price retested the major resistance in June 2019, only to collapse back down to support at $7,000. Bulls were not able to rally with enough volume throughout the end of the year and then news of this deadly virus allowed for a smooth reversal to the downside, grabbing liquidity below the range at $3,500 one more time as lockdowns for the virus began around the world. We continue seeing extremely bullish price action as the pandemic cripples the worlds economies. The number of people gaining access to investing and purchasing such assets like cryptocurrency as security despite various governments cracking down on the tech and trying to make their own has been astonishing. Despite there being many altcoins in the markets, we are seeing bullish price action across the board for many of the major cryptocurrencies especially as the dollar continues to gain strength. Until the fed change some major fundamentals concerning their precious USD or we get more stimulus, we could continue seeing little resistance to the bullish trends seen recently on our precious metals and crypto. As of writing this, price continues to follow my analysis as it gets pulled above the current range at $33,535, breaking $33,800 for a short term target of breaking and retesting $34,250. If price can break and hold this key yearly pivot 34.25, we will see a completion of the pendulum swing back to 40k, where the bulls failed to close last Friday the 29th of January.
Possible Bearish Patterns
If price fails to break and hold our key pivot level, we could see price run down to bottom of the current range of 33k to 32k. I want a strong bounce off support and the moving average, then wait for the first test off that new hidden channel created by the break through and retest of support. First test is the best test off that previous support of 32.5, or 31k level if we see very strong price action to the downside.
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My fundamental analysis stays overwhelmingly bullish as bitcoin, like the Dollar, is holding its reputation of being a safe haven currency along with gold. This is also while silver gets pumped 11.5 percent to its highest level in eight years by wallstreetbets and might not get dumped playing toward the risk-on sentiment seen world wide. That being said, long term sentiment of the dollar remains bearish because more stimulus is expected. The Fed has yet to change major fundamentals for the new year, stating they would leave interest rates at near-zero and continue making large bond purchases. More stimulus check means more for crypto :)
My technical analysis is not what I and many others expected. As history always repeats itself, we saw a staircase drop to a strong bleed after the $20,000 rally end of 2017 beginning 2018. Price retested the major resistance in June 2019, only to collapse back down to support at $7,000. Bulls were not able to rally with enough volume throughout the end of the year and then news of this deadly virus allowed for a smooth reversal to the downside, grabbing liquidity below the range at $3,500 one more time as lockdowns for the virus began around the world. We continue seeing extremely bullish price action as the pandemic cripples the worlds economies. The number of people gaining access to investing and purchasing such assets like cryptocurrency as security despite various governments cracking down on the tech and trying to make their own has been astonishing. Despite there being many altcoins in the markets, we are seeing bullish price action across the board for many of the major cryptocurrencies especially as the dollar continues to gain strength. Until the fed change some major fundamentals concerning their precious USD or we get more stimulus, we could continue seeing little resistance to the bullish trends seen recently on our precious metals and crypto. As of writing this, price continues to follow my analysis as it gets pulled above the current range at $33,535, breaking $33,800 for a short term target of breaking and retesting $34,250. If price can break and hold this key yearly pivot 34.25, we will see a completion of the pendulum swing back to 40k, where the bulls failed to close last Friday the 29th of January.
Possible Bearish Patterns
If price fails to break and hold our key pivot level, we could see price run down to bottom of the current range of 33k to 32k. I want a strong bounce off support and the moving average, then wait for the first test off that new hidden channel created by the break through and retest of support. First test is the best test off that previous support of 32.5, or 31k level if we see very strong price action to the downside.
Like, comment, and follow for more future content like this :)
*Courtesy of CoinMarketCap