Last Friday’s NFP was disappointing. The reaction of the markets was astonishing. Will it last longer? Let's find out the main trade opportunities for the upcoming week.
Bitcoin bulls buy gold
2021-02-11 • Updated
Bitcoin skyrocketed to a record high this week after Tesla announced it had made a $1.5 billion investment in the cryptocurrency. Cryptos are becoming more popular not only among traders, but also large corporations start showing their interest. By the way, Mastercard has uncovered its plans to let payments in crypto already this year. Apple claimed it would launch its own crypto exchange.
While some analysts believe gold will be soon replaced by crypto. We should admit that cryptocurrencies are highly volatile. Therefore, investors see gold as a way to hedge against this volatility due to its stability.
“If you’re into cryptos, you want to consider having some gold. Bullion “may act as a bit of a hedge against the volatility of cryptos,” said Newcrest Mining.
According to Goldman Sachs, gold and bitcoin can exist together. Even if crypto bites off some demand from the yellow metal, the precious metal will remain sought-after.
Gold has been trading in a descending channel since mid-summer. This week it has gained due to the weak US dollar, but the upside is limited by the 200-day moving average of $1 850. If the price drops below the low of January 15 at $1 825, the doors towards the one-week low of $1 790 will be open. On the flip side, the breakout above $1 850 will push the price up to the 100-day MA at $1 870.
Unlike gold, BTC is up more than 50% in 2021. If it jumps above $47 000, the way up to the next round number of $50 000 will be clear. Support levels are at the recent lows of $39 000 and 37 000$.
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After an extremely volatile week in the markets, traders await the next steps of the USD and stocks. What drivers will move the assets next week? Lets’ find out!
The market is preparing for an active week. Have a look at the trading instruments with the most interesting potential!
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Hey folks, it’s a wrap to yet another month in the 2023 calendar, and I’m guessing you know what that means - time for another episode in the “What To Trade” series. For December, I will be mapping out trade more cautiously as the market volatility often drops
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