Gold price is holding in the bullish zone. According to technical analyst Ross Burland, gold could test recent highs around $2,000. Crypto analyst Rakesh Upadhyay says that Bitcoin bulls are patient and anticipating a move higher.
It is unlikely that the gold price will fall further.
cryptocoin.comAs you follow, the US February core PCE deflator, the Federal Reserve’s preferred inflation indicator, increased less than expected. Despite Friday’s economic news in this direction, gold price closed the day with a 0.5% decrease at $1,987.50 and fell to $1,966.81. The data were raising hopes that the Fed’s rate hikes could be close to an end. However, metal prices fell from their highest levels on Friday, and gold fell into negative territory after the US dollar rose in month-end and quarter-end flows. TD Securities analysts make the following assessment:
Gold prices rose for two consecutive quarters, recording the largest cumulative percentage gain since the six-month period ending September 2020. Investors remain concerned that the recent banking sector crisis will reduce lending in the US and interest rate sensitive sectors will experience a difficult period. Therefore, investors decided that it is unlikely that gold will drop further.
Gold price technical analysis
Because of this, money managers aggressively closed their short positions. As interest rates fell and the US dollar weakened, speculators took new large long positions and used the yellow metal to maintain purchasing power.
Gold is poised to test recent highs around $2,000 amid lower-than-expected PCE inflation and possible new economic weakness. But the market is waiting for March payrolls to decide if next week is the time to push gold to recent highs.
The W-form of the weekly chart saw the price of gold slope towards the neckline. There is still a long way to go, but there has already been a 38.2% Fibonacci retracement.
Meanwhile, we have a bullish pennant on the daily and 4-hour charts:
On the lower timeframe, the supporting trendline remains under pressure, but as long as the majority of the trend remains intact, the bullish pennant will remain valid.
An overview of the cryptocurrency market
The market witnessed a major banking crisis in March as Silicon Valley Bank and Signature Bank went bankrupt and Silvergate Bank went into liquidation due to serious financial difficulties. In Europe, the government mediated the forcible takeover of Credit Suisse by UBS. Still, US stock markets and European stock markets closed the month on a positive note.
The cryptocurrency market was also shaken by the volatility, but Bitcoin gained about 23% in March. Looking forward, the chart looks encouraging for Bitcoin bulls in April. Data from Coinglass shows that the month is largely in buyers’ favor.
Although altcoins responded positively to Bitcoin’s rise, the rally overall was uneven. This shows that market participants are selective in their purchases. As a result, investors can focus on the movers rather than the laggards.
Bitcoin price analysis: Bulls are patient
Bitcoin is facing stiff resistance at $29,000 but the bulls did not let the price lose ground. This indicates that the bulls are patient and waiting for a higher move.
A bullish 20-day exponential moving average ($27,012) and a relative strength index (RSI) above 61 suggest buyers are in control. The bullish momentum is likely to increase after buyers clear the $29,200 barrier. This could start a rally towards $30,000 and then towards $32,500. Conversely, if the price drops sharply from the current level, it will indicate that short-term traders are selling. BTC could drop to the 20-day EMA, which is an important level to consider.
If this support gives way, BTC could slide towards the $25,250 breakout level. This is a make-or-break level for Bitcoin. Because if it crashes, the sell-off could intensify and the decline could extend to the 200-day simple moving average ($20,424).
Buyers pushed the price above the overhead resistance of $28,868, but failed to sustain higher. This suggests that the bears are trying to keep the price below $28,868. If the bears continue to hold the price below the 20-EMA, BTC could start to drop to $27,500 and then to $26,500. On the upside, a break and close above $28,868 will indicate the bulls have overpowered the bears. This could mark the start of the next leg of the upward movement. The target appears at $31,236 without a break above the $26,500 to $28,868 range.
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