Observing the Frontier: bitcoin price and gold
Bitcoin price approaching valuation of gold
As we go into March 2017, the proximity of bitcoin price to the price of gold is bound to spark international headlines as well as increased market activity.
The attached 4hr Bitstamp chart explores the support & resistance zones immediately above and below price, as well as the contention zone that price has now entered as Bitcoin challenges the traditional role and status of gold - an historic moment by any measure.
The obvious support zone around $1000 extends down to $900 because of the presence of a long-term Fib line. The Fib fan that this line (and the one near $1600) belong to originates at the January 2015 low.
The sense is that, should the market trade price through $1300 without a disruptive sell-off, then each $100 price increment to $1600 should see a wave of advance.
One technical concern for continuing advance is the gap that has developed between MACD (panel immediately above price) and its lower Bollinger Band. Price occasionally declines under this indication as MACD plummets below zero into the BB gap.
Readers are reminded that this is not a forecast, but a discussion of the probability distribution evident in the chart. To successfully trade the chart at this stage of trend traders should consider indications at multiple timeframes and execute position entries with a known-good trading method and money management strategy, as discussed and taught at trade.cryptocurrents.net
As we go into March 2017, the proximity of bitcoin price to the price of gold is bound to spark international headlines as well as increased market activity.
The attached 4hr Bitstamp chart explores the support & resistance zones immediately above and below price, as well as the contention zone that price has now entered as Bitcoin challenges the traditional role and status of gold - an historic moment by any measure.
The obvious support zone around $1000 extends down to $900 because of the presence of a long-term Fib line. The Fib fan that this line (and the one near $1600) belong to originates at the January 2015 low.
The sense is that, should the market trade price through $1300 without a disruptive sell-off, then each $100 price increment to $1600 should see a wave of advance.
One technical concern for continuing advance is the gap that has developed between MACD (panel immediately above price) and its lower Bollinger Band. Price occasionally declines under this indication as MACD plummets below zero into the BB gap.
Readers are reminded that this is not a forecast, but a discussion of the probability distribution evident in the chart. To successfully trade the chart at this stage of trend traders should consider indications at multiple timeframes and execute position entries with a known-good trading method and money management strategy, as discussed and taught at trade.cryptocurrents.net
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