Key Takeaways:
- Gold slashed a significant price and hit its lowest level of $1661.2
- The current level is below the previous all-time low of $1,717.32
- Bitcoin is currently testing the $19,000.00 support level
Gold price action since 11th August 2022 has been a declining trendline.
The current level results from a breakdown from an ascending trendline and follow the bearish sentiment’s completion. The precious metal has been under pressure as investors seek refuge in the US dollar amid concerns about the global economy.
Gold prices fell to a low of $1,661.20 on Friday, the lowest since May 2020.
Bitcoin, the world’s largest cryptocurrency by market value, plunged to lows of $19,798.93 on Friday. The digital currency is currently testing the $19,000 support level. Bitcoin hit its all-time high on 5th September 2021 when it attained over $65,000, but it has shed about 70% of that value since then.
The sell-off in gold and Bitcoin comes as the US dollar index, which tracks the greenback against a basket of six other currencies, climbed to a one-month high. The rise in the dollar is typically seen as a headwind for commodities priced in the US currency.
GOLD hints at further weakness
The current level results from a breakdown from an ascending trendline and follow the completion of the bearish candlestick pattern. The precious metal price is currently below the $1,700 previous support level and is testing $1,660, which is the May 2020 low.
A breakdown below this level could see gold prices tumbling to the $1,600 per support level in the short term.
On the other hand, if gold prices rebound from the current level, the $1,700.00 resistance level will be back in focus. A breakout above this level could see gold prices rallying to the $1,750 resistance level.
The Relative Strength Index (RSI) is currently at 37 and indicates that gold prices are in oversold territory. This means that there is a possibility of a rebound in gold prices in the short term.
The Moving Average Convergence Divergence (MACD) indicator is currently in bearish territory. Still, it is close to the zero line, which suggests that gold prices could see some consolidation in the short term.
BITCOIN corrective rally stalls around $20K
Bitcoin corrected higher this week after a minor sell-off on Tuesday, but the $19,800 resistance level limited the upside. The digital currency is currently trading at $19,798.93, and it remains at risk of further losses in the near term.
On the downside, support is located at the $19,000 level. A break below this level could see Bitcoin tumbling towards the $18,000 level. To the upside, resistance is located at the $20,000 level. A breakout above this level is needed to reach the $21,000 level.
