As huge uncertainty builds on the world stage with the US/Iran face-off, investors are once more turning to gold and silver to park their wealth. Both of these assets are signalling potential breakouts. Down in the depths of a bear market, could Bitcoin be about to follow?
Gold breakout heads for $5,100
Source: TradingView
Back above $5,000 again, the gold price has seen a small trend break and is heading back to the $5,100 horizontal resistance level. If the bulls get a head of steam behind them, a 2% daily gain would be the required amount to push the price through this last important resistance level. Given recent price history, 2% is certainly a very doable rise. From there, an ascent back to the $5,600 all-time high is a real possibility.
Silver up 3% but stalls at $80,000 resistance
Source: TradingView
Silver is breaking out in fine fashion on Friday morning. A triangle pattern has broken to the upside and silver is up more than 3% on the day so far. There is horizontal resistance at the current price level, so in order for this rally to continue the bulls will have to provide another good shove to force the price up and through.
If Silver can then confirm this level as support, only one more decent resistance remains at $92 to $93 before the silver bulls get the chance to take the price back to the $121 top. If the price gets there, beware of a double top.
Bitcoin up, but major resistance awaits
Source: TradingView
The $BTC price is having its own decent little period of upside. 1.7% up on the day so far, the price is not far from the bottom of the bear pennant pattern it recently fell out of. However, the immediate issue with Bitcoin, and the reason it might struggle compared to gold and silver, is that the price could just be coming back to confirm the breakdown from the pennant. What’s more, just above this area is the major horizontal resistance at $69,000. It will take a gargantuan effort from the bulls to push the price back above and confirm this level as support once more. That said, options expiry today has max pain at $70,000…
Weekly close above $69,000 could be turning point
Source: TradingView
The weekly chart shows just how important it would be for the bulls to close this candle above that $69,000 horizontal level and keep it as support, which it still is in this higher time frame. We already have the huge wick down to $60,000 which was bought up very strongly.
We then had the following weekly candle very slightly slipping below, but with a decent wick down to $65,000, and now for this current week there is the possibility of another similar candle and wick.
This does rather look like the major support could be holding. Of course, if the weekend turns red for the $BTC price, that support would be in grave danger once again.
However, if one also takes into account that the Stochastic RSI indicators in this time frame are nicely positioned, ready to swing back up, and that these indicators are at the bottom for the 2-week and the monthly time frames, it tells a story that a bottom is very likely forming.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.