Kiran Shroff | Apr 04, 2019 01:34
In the cryptocurrency space, Bitcoin just got a wake-up call and showed a significant gain of almost 20 percent in only two days' time. Commodities, on the other hand, have had a good quarter in Q1 2019 with Bloomberg Commodity Index rising from 160.30 points at the beginning of 2019 to 169.82 points by the end of March, giving a positive return of 8.4 percent.
Those who study inter-market relationships to predict market movement can always look at historical price charts to see the level of correlation between commodity and stock markets. This may not be possible with the cryptocurrency market as it is relatively new and does not have enough historical data to draw any correlation or conclusion.
Bitcoin (BTC.CPT) Close: 4957.52, April 02, 2019
The cryptocurrency benchmark Bitcoin gave a surprise two days ago by gaining over 13 percent on Monday and 6 percent on Tuesday. It broke above its downtrend channel in the medium term. In the first place, a breakout from the falling trend channel indicates either a slower rate of fall or possible development of a sideways trend. It has now risen above its resistance of 4200 dollars. In the short term chart, it has sharply broken above the rising trend channel on high volume. There is now support at 4200 and resistance at 6600. Hence reward to risk ratio is favorable.
Positive volume balance, with high volume on days with rising prices and low volume on days with falling prices, strengthens the cryptocurrency. RSI above 70 shows that there is strong positive momentum in the short term. Investors have steadily paid more to buy the crypto, which indicates increasing optimism and that the price may continue to rise. Positive volume balance and strong momentum make Bitcoin a weak buy instead of a watch in Investtech's short and medium-term charts.
Investtech's outlook (one to six months): Positive
Analysis for Brent Crude Nymex and Gold futures can be read under the 'original post' link.
Analyses are based on closing price as per April 02, 2019
Disclaimer: All analyses used herein are subjective opinions of the author and should not be considered as specific investment advice. Investors/Traders must consider all relevant risk factors including their own personal financial situation before trading.
Written By: Kiran Shroff
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