BTC/USD, XAG/USD (Silver): Technical Outlook, Edition #6 (29/05/21)

BTC/USD

Bulls lost some critical support around USD 37K. However, there are still signs of life that suggest they are around.

A bullish bounce here could reveal the right shoulder to an inverse head and shoulders pattern, usually associated with a bullish reversal after a big sell-off. If this is true, our Bulls need to fight an uphill battle and get above the yellow neckline around USD 40K.

It’s a very tight range because we still have the 1D 200 MA (moving average) right above that neckline at USD 41k. Time is running out for the bulls, and if this right shoulder forming breaks down, then there is still a massive order block. Also, observe that the .5 macro fib level is around USD 30K.

Weekends are usually an illiquid trading period for Bitcoin because the prominent futures exchanges, such as the CME and CBOE, are closed. It’s the perfect time to trick the market with false setups that reverse when the US market returns for its Monday trading session.

XAG/USD:

One of the most attractive setups across the board, Silver remains the most undervalued commodity in the market right now. As inflation expectations increase by the day, the imperative to search for hedges against inflation becomes ever more apparent.

Considering that other commodities don’t behave as aggressively as Bitcoin, we refer to the 1W XAG/USD chart for a macro view.

Now, if that isn’t the most apparent bull flag we’ve ever seen form…

As pressure builds inside the flag, coiling tighter and tighter, the break to the upside becomes more attractive to speculators.

If Gold maintains these highs around USD 1900, then silver will punch right through resistance and retest the zone as newfound support before moving higher, up to USD 35, which appears to be happening as we speak.

Sector rotation and risk-off mean the Uncertain Money leaves higher-risk investments and moves towards inflation hedges such as silver. Stay tuned for our future reports that will cover this concept in much more detail.

See you again for the next update.

- q

Follow us for more detailed analysis on all markets, including Decentralized technology:

Subscribe to our newsletter, with daily free content for a limited time only:

https://research.qluster.co/

Join our Facebook group and speak with likeminded traders:

https://www.facebook.com/groups/156981244915722

Like our Facebook page for future updates:

https://www.facebook.com/qlusterco


The information on this website is for general information purposes only. It is not intended as legal, financial and/or investment advice and should not be construed and/or relied on as such. Before making any commitment of a legal and/or financial nature you should seek advice from a qualified and registered legal practitioner and/or financial and/or investment adviser. No material contained within this website should be construed or relied upon as providing recommendations in relation to any legal and/or financial product. Qluster does not recommend and/or endorse products and does not receive remuneration based upon investment and/or other decisions by our email recipients, publications, newsletter or website users.