Bitcoin (BTC) bounces back to higher highs seen days ago after a rejection just above $45,000, while gold is consolidating near weekly tops above $1,950 amid volatile markets.
Bitcoin is on its way to see the highest weekly close of 2022
Bitcoin’s 21-week exponential moving average (EMA) is also suitable for a turn as resistance, according to popular analyst Rekt Capital. Bitcoin had previously given satisfactory results for the bulls when it crossed the 46,000 level. In the technical chart below, the analyst examines the previous contacts of Bitcoin price with the 21 EMA.
However, some analysts were not convinced by the strength of the current levels. Among them is fellow analyst Crypto Ed, who warns that buying long-term resistance doesn’t make much sense in terms of the risk/reward ratio of an annual open of around $46,000.
Glassnode co-founders Yann Allemann and Jan Happel He argued that this is an uptrend in itself, as it is driven by continued upward spot demand:
The move to $44,000 seems to have been driven by spot demand. Every sustained BTC bullish move is governed by the spot market.
Gold price February high at $1,975
On the gold side, the precious metal is consolidating up amid volatile markets after two consecutive days of gains. Treasury yields stabilized at higher levels, as the US dollar recovered early lost ground. Investors are waiting for clarity on the Russia-Ukraine crisis amid ongoing hostilities in Ukraine and a stronger Western response to Russia. According to analysts, gold price volatility may return for a short time as focus shifts to the US Non-Farm Payrolls (NFP) announcement next week.
Indicators suggest gold price seeks acceptance above $1,960, one-day Fibonacci 23.6%, previous year high and four-hour SMA5 convergence. Gold bulls can then target the next circular level of $1,970 and the previous day’s high of $1,966. The one-day R1 pivot point aligns at this point. $1,975, the previous month high, is the critical level to cross for the bulls. Alternatively, 61.8% one-week support awaits at $1,955 on Fibonacci, below which sellers would expect Fibonacci 61.8% one-day support at $1,949.
Failing to resist above the latter will start a fresh decline towards the one-day pivot point S1 at $1,942. The previous day’s low and one-day SMA5 consolidation at $1,937 will challenge bullish commitments should the downside increase.
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