Gold - Bitcoin Close to a Vital Ray. Volatility Alert.Gold, in terms of Bitcoin, is getting close to an important ray that crosses through the two significant tops.
Should we expect a strong reaction?
If we take a look at the third rejection from the bottom, we can see that it was able to get below the bottom ray but quickly reversed upward. So, we should definitely expect a strong reaction to the upper ray. Especially, as the BTCUSD price was reject at the linear ray that connected the last two bull peaks, this should be treated as seriously.
The 1 day EMA400 is above the MA400, which means that price is likely to rise to hit it, although it has entered the KC (Keltner Channels/EMA Bands), so I wouldn't count on the EMA400 being hit.
Saying that, it will act as resistance at about the same place as the upper ray.
What should we expect?
If gold breaks the upper ray, then we could be in for a very significant rise in price (BTC).
If gold is rejected, then we should expect a decision on direction by the start of August at the latest. If it takes that long, then we should expect to see gold drop to about 0.0248BTC.
We can look for clues in the RSI, depending on which way it breaks out. On the weekly chart, the RSI peaked at 65, not yet in overbought territory.
What to do?
As gold, and charts in general, do not offer a BTC pairing yet (with the exception of tethered gold on a crypto exchange), you'll have to use this chart as a guide and watch both Gold and BTC priced in something like USD or, the oldest currency still in use, GBP.
Gold has been up for a significant amount of time , is overbought and recently hit a Fibonacci Retracement level when priced in USD. If gold cools off and Bitcoin rises then the lower ray won't take long to encounter.
Gold in BTC could pump very up very high and reverse. This would seem likely caused by BTC crashing in that scenario, however, Bitcoin might be entering a bear market. I suspect it will either be very short or very long, based on the 6M and 12M RSI.
Main takeaways:
The gold and bitcoin markets are about to get very volatile, so take caution/avoid high or any leverage.
Use the GOLDUSD chart and change the currency to BTC for clues on direction in the coming days or weeks.
This could lead to a long term direction, but unfortunately, you cannot add alerts to a chart with an altered pairing, so perhaps use the PAXGBTC chart and add alerts there.
[*}BTCUSD hit the 1 day MA/EMA400 at the bottom and is getting close on this chart. I suggest adding BB400 (at various SDs) and KC400 to your charts, even if you use BB20.
You might want to use HLC Area instead of candles/bars as price appears to jump around willy-nilly else.
When you find a chart difficult to read, try swapping to BTC for more clues. If the chart is Tesla, then you might even want to try Dogecoin!
In addition to these charts, the BTC Dominance chart shows that BTC has hit the same pitchfork line that it hit when the first alt season began! So, I expect a strong move there too.
So, if BTC does rise then we might get an alt season very soon.
This is my first Idea that I've published, so please forgive any mistakes, omissions or poor formatting. I am open to critical feedback.
I just wanted to put this out there as I haven't seen anyone cover this online. If you have or know of related ideas, then please
share, as I am always interested in finding ways to predict major market moves.
