Gold and Bitcoin are entering a very important week. This week, Federal Reserve Chairman Jerome Powell will testify and the US Nonfarm Payrolls data will be key events. According to the technical analyst, the 4-hour dynamic support for gold remains the key point on the bullish path. The crypto analyst, on the other hand, paints a pessimistic picture for Bitcoin.
What do the gold charts of the week say?
As you follow on cryptokoin.com, gold rallied on Friday to announce its first weekly gain in five weeks, as the decline in US dollar and Treasury yields eased some concerns about further rate hikes by the Federal Reserve. However, new data earlier this week showed continued resistance in the US job market ahead of this week’s NFP. This is likely to put pressure on the labor market to raise interest rates on the Fed. Meanwhile, a stronger USD and higher yields have also negatively impacted investors’ demand for the precious metal.
The US Dollar’s rally in February depressed gold, but the bulls were relieved of those pressures earlier in the month when the US Dollar Index (DXY) ended with its first weekly loss in five weeks. According to technical analyst Ross Burland, the charts below indicate a temporary bullish phase ahead of Fed Chairman Jerome Powell’s statement. But if President Powell makes a hawkish rhetoric, gold could witness this week’s rally evaporate, especially if the Nonfarm Payrolls data sets us another record. However, according to the analyst, we are currently in a bullish phase for the gold price, as the charts below show.
The bulls have stepped in and the Friday candle is strong, leaving the possibility of a continuation earlier this week.
We have resistance nearby where further advances are expected to be met with supply around $1,880/90.
The 4-hour chart shows that the gold price continues dynamic support, which is expected to hold the first tests. However, breaking it opens the risk of a move to test the crucial support structure at $1,825. A breakout there will likely result in a flurry of orders triggered, followed by a rapid bearish move.
A bearish sentiment prevails on the week’s Bitcoin charts
U.S. stock markets rebounded strongly last week, but the leading crypto failed to do the same. This means crypto investors stay away and crypto-friendly bank Silvergate is concerned about ongoing problems. Crypto analyst Rakesh Upadhyay assesses Bitcoin’s outlook on daily and 4-hour charts. The leading crypto declined below the support at $22,800 on March 3. Buyers tried to push BTC above the breakout level on March 5, but failed. Also, the long wick on the candlestick indicates that the bears are attempting to turn $22,800 into resistance.
BTC daily chart / Source: TradingViewMeanwhile, the 20-day exponential moving average at $23,159 has started to decline and the RSI remains below 44. This is an indication that BTC bears are trying to consolidate their position. On the other hand, sellers will try to push the price below the $21,480 support. If they succeed, it is possible for Bitcoin to retest the vital support at $20,000.
However, if the bulls want to avoid this drop, they have to quickly push BTC above the 20-day EMA. Because such a move would indicate aggressive buying at lower levels. The leading crypto is likely to rally to $24,000 and then to $25,250 later. Also, a break above this resistance would imply a potential trend change.
BTC 4-hour chart / Source: TradingViewMeanwhile, on the 4-hour chart, the moving averages are turning down, also with the RSI close to 39. This shows that the bears have the upper hand. If Bitcoin drops from the 20-day EMA and slides below $21,971, it is likely to retest support at $21,480. On the other hand, if the bulls push the price above the 20-EMA, things change color. Because this is perceived as an indication that the bears are losing control. The leading crypto is likely to head towards the 50-day simple moving average later on. Here comes an important level for the bears’ defense. Because a break above this level is possible to open the doors for a rally towards $24,000.
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