Crypto/Gold Analysis
Updated
Current economic and political general dismay impacts the valuation of different fiat currencies, specifically the USD(DXY). This is due to:
Worldwide investors' stakes in equities and cryptocurrencies have been shortened. The price of Bitcoin is declining further with the US dollar substantially rallying. Nevertheless, its arguable intrinsic value may be better approximated through spread graphs, particularly - BTC/GOLD; as it omits the mentioned political and economic supply/demand effects for a more precise analysis. This may be recognised through technical analysis of past prices
The main graph presents GOLD/BTC breaking out its long-term resistance; which logically makes sense.
history reminds us:
Potential Trade
Short BTC:
Entry Price:16,700
TP:15,515
SL:16,920
- Lower global trade activity (recession) = lower dollar supply = USD price increase
- Demand for USD increases for the safe haven currency = USD price increase
Worldwide investors' stakes in equities and cryptocurrencies have been shortened. The price of Bitcoin is declining further with the US dollar substantially rallying. Nevertheless, its arguable intrinsic value may be better approximated through spread graphs, particularly - BTC/GOLD; as it omits the mentioned political and economic supply/demand effects for a more precise analysis. This may be recognised through technical analysis of past prices
The main graph presents GOLD/BTC breaking out its long-term resistance; which logically makes sense.
history reminds us:
- The upcoming recession doesn't look promising for such volatile securities with (arguably) no intrinsic value
- Inflation = Gold is Bullish
Potential Trade
Short BTC:
Entry Price:16,700
TP:15,515
SL:16,920
Trade active
Thanks Guys!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.