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Sunday, October 13, 2024
Gold, bitcoin bias turning bullish as price and momentum signals combine. Oct 14, 2024
By : David Scutt, Market Analyst
- Gold and bitcoin have not been overly correlated with any market over the past month
- Given the quiet data calendar this week, price signals may be more useful when assessing potential trade setups
Overview
Gold and bitcoin are not particularly correlated with any market right now, suggesting increased emphasis should be put on price signals when assessing trade setups in the week ahead. Having broken minor downtrends on Friday with gusto, the bias for both is higher near-term.
Gold, bitcoin not influenced by macro environment
The correlation analysis below tracking the rolling 20-day relationship with a variety of market variables shows both gold (LHS) and bitcoin (RHS) have been doing their own thing recently, showing little to no relationship with the US dollar, real or nominal US bond yields, US inflation expectations or other long duration assets like tech stocks.
The lack of any meaningful correlation suggests that rather than trying to assess setups using macro events, the price action in these markets may be more useful for traders to consider.
Click the website link below to get our exclusive Guide to bitcoin trading in Q4 2024.
https://www.cityindex.com/en-au/market-outlooks-2024/Q4-bitcoin-outlook/
Gold breaks downtrend, bearish momentum may be turning
The key reversal candle that I wrote about late last week proved to be a reliable signal for the price action on Friday, seeing gold break downtrend resistance dating back to the record high of late September.
With RSI (14) also breaking its downtrend, it looks like the mildly bearish picture of the past month is turning brighter for bulls, putting a retest of the record highs on the radar for traders. MACD is yet to confirm the signal, although it’s showing signs of bottoming.
We’ve seen a minor pullback in early Asia trade on Monday, seeing the price retest the minor uptrend from mid-September that provided support until broken early last week.
If the price holds above this level, consider buying above with a tight stop below for protection targeting a push towards the record high of $2685.7. If it were to be taken out, traders may look for a push towards $2700.
Bitcoin dip-buying preferred near-term
Bitcoin had a strong end to last week, bouncing from the 50 and 200-day moving averages after falling below them Thursday, completing a morning star pattern in the process.
The push higher saw the price break downtrend resistance dating back to late September, pushing above $62352.50 which acted as both support and resistance during periods over the past month.
Like price, RSI (14) also broke its downtrend, signalling a potential turn in bearish momentum. As yet, MACD has not confirmed the bullish signal, but it’s getting close.
Given the price action and momentum signals, buying dips is favoured in the near-term.
Those considering longs could buy around these levels or wait for a potential pullback towards $62352.50, allowing for a stop to be placed below the level for protection. Topside targets include $64458.70, $66480.80 and major downtrend resistance currently located around $68000.
-- Written by David Scutt
Follow David on Twitter @scutty
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Gentle taxes reminder for US Citizens living in the US and abroad
You only create a taxable event when you sell Bitcoin for another asset, be it fiat or anything else.
Buying, storing, transferring Bitcoin to another address that you own DO NOT make a sell event.
Again, moving and storing your Bitcoin is NOT taxable.
I see confusion from time to time on this and I know the thought of taxes can be scary, so please let this post put your concerns at ease if this was unclear to you previously.
World Liberty Financial, Endorsed by Trump, Launches Its Much-Anticipated Token Sale Next Week!
World Liberty Financial, Endorsed by Trump, Launches Its Much-Anticipated Token Sale Next Week!
Exploring the Rise of World Liberty Financial’s DeFi Ambitions
The Emergence of WLFI in the DeFi SceneIn a dynamic stride toward financial innovation, World Liberty Financial—a burgeoning decentralized finance (DeFi) protocol—has recently seized headlines. With backing from notable public figures such as Donald Trump and his family, the protocol is gearing up for an eagerly anticipated token sale slated to commence on October 15th, aligning just weeks ahead of the U.S. presidential election where Donald Trump will represent the Republicans.
This strategic announcement was made public via their official social media channels last Friday, specifying that this event would be accessible to all eligible participants vetted through a prior whitelist process. This move is set to mark a significant milestone in leveraging blockchain technology for electoral finance.
Broadening Horizons with High-profile Endorsements and Strategic AlignmentsAt its core, World Liberty Financial is steered by Zachary Folkman and Chase Herro—industry professionals with roots in another DeFi initiative called Dough Finance which unfortunately encountered a security breach last July resulting in considerable financial losses. Despite past challenges, their current venture enjoys robust advocacy stemming largely from its high-profile endorsements.
Within its promotional activities, various members of the Trump clan have stepped forward in roles amplifying this project’s vision; Donald himself has been denoted as “Chief Crypto Advocate”. Meanwhile, Eric Trump and Donald Trump Jr. engage as “Web3 Ambassadors,” further solidified by Barron Trump’s involvement labeled as “DeFi Visionary.”
The ambitious agenda set forth by World Liberty Financial entails raising substantial funds through its forthcoming token sales—targeting $300 million at an impressive proposed valuation of $1.5 billion according to recent insights from The Block.
Technical Deployment and Future ProspectsFrom a technical standpoint, plans are underway for launching these operations on Aave’s Version 3 platform atop Ethereum’s mainnet chain—a potential game-changer envisaged to facilitate liquidity provisions not only for Ethereum but also wrapping Bitcoin (wBTC), various stablecoins and potentially more digital assets.
As per governance discussions released by Aave earlier this week, this collaboration purports not just operational synergy but also strategic innovations potentially reshaping aspects of DeFi lending protocols while fostering broader adoption across different asset classes.
Amidst these developments are insightful predictions within trading circles such as Polymarket traders who currently position Donald Trump as leading contender for November’s presidential race scheduled on November 5th.
Outlook: Adoption & Speculation Amid Regulatory Landscapes
World Liberty Financial stands at a pivotal juncture fuelled by high stakes endorsement and significant technological partnerings that could possibly redefine parameters within cryptocurrency investments and governance related policy-making conjectured around future market dynamics.
Given its alignment with prominent political figures amidst an evolving regulatory framework globally around digital assets utilization advocates prudent monitoring from investors intrigued both by potential returns amidst fluctuations playing out over geopolitical undercurrents influencing broader market volatilities tied into upcoming electoral timelines.
📰 AI-curated Daily Crypto Digest - October 13
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💲 Crypto Trader Loses $35 Million In Minutes – Here’s How
Blockchain security platform Scam Sniffer recently revealed a crypto trader who lost $35 million in minutes. This trader is said to have lost this sum thanks to a social-engineered crypto scam, which continues to be rampant in the industry. Explore further
📈 Bitcoin Bull Run To Resume Soon? Crypto Market Liquidity At Record Highs
According to the latest on-chain data, liquidity in the cryptocurrency markets has reached an all-time high. Here’s the implication of the rising liquidity on the price of Bitcoin and its future trajectory. Read the full article
🤖 Crypto Companies paid $19B in Settlements to US Regulators in 2024
Since 2019, US regulators have collected a total of $31.92 billion in settlements from 25 crypto companies across various lawsuits. More details
🏦 Singaporean Exchange Fairdesk Announces Plan To Shut Down – Details
Singaporean cryptocurrency exchange Fairdesk has unveiled plans to wind down its operations in the coming month. This move comes as a surprise, as there had been no prior indications of difficulties facing the platform. Read the full article
🤖 CZ Drops Major AI Warning: What Binance’s Founder Wants You To Know
The co-founder and former CEO of crypto exchange Binance, Changpeng Zhao, has issued a warning to the general public and the cryptocurrency community regarding the emergence of numerous of deepfake videos created by artificial intelligence and their potential to trick gullible and unsuspecting users into making false or fraudulent cryptocurrency investments. Related Reading: Argentina Leads […] Explore further
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