Crypto Industry News:
When Bitcoin peaked at $ 57,634, it surpassed the price of $ 57,336 calculated approximately per kilogram of gold. At the time of writing this publication, the price of gold relative to bitcoin is at its lowest level ever. At the same time, the price of bitcoin is at its highest ever.
The US dollar plunged sharply last summer as a result of quantitative easing (QE). The US Federal Reserve quickly "reprinted" an unprecedented amount of money. While government statistics showed that the inflation rate was just 1%, the cost of living and the prices of goods and services soared in the wake of the pandemic.
It was around this time that both gold and bitcoin rose as well. On July 1, a kilogram of gold cost $ 57,093. By August 4, it was $ 65,477. During the same period, bitcoin's price soared from $ 9,145 to a high of $ 12,034 (as of August 2, 2020). Faced with problems with the world's most important reserve currency, investors were drawn to both gold and bitcoin.
Technical Market Outlook:
The BTC/USD pair has made a new all time high at the level of $58,258. Nevertheless, at the H4 time frame chart there is a Shooting Star candlestick pattern visible at the end of this rally, so some kind of a pull-back or correction should be expected. Please keep an eye on the level of $54,909, which is the key short-term technical support for the price. The next technical support is located at the level of $52,505. Any violation of the level of $51,768 will mean the price overbalance is done and market can start a new cycle down.
Weekly Pivot Points:
WR3 - $75,571
WR2 - $67,184
WR1 - $63,246
Weekly Pivot - $54,169
WS1 - $50,671
WS2 - $42,010
WS3 - $37,979
Trading Recommendations:
The bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $60,000. Any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $41,125 is clearly broken.
