Bitcoin fell 1.4 percent to $62,872, and gold lost 1.5 percent to $4,056. Silver decreased 2.3 percent to $58.48. While all three assets decreased on the day, they show decidedly different stories when looking at the charts. Bitcoin remains within the same trading range it has established in recent weeks. Gold is testing an important support level and silver is testing a lower one, having already breached another.
That distinction matters more than daily percentage change. Typically when investors decide to de-risk, the assets tend to fall in correlation to each other in the overall market. The real question to the move-in price, then, is where it falls. Bitcoin has stayed within its support levels, gold is attempting to remain above them, and silver has lost support already. They all trended in the same direction; however, their technical position indicates a different degree of robustness moving forward into the next trading sessions.
The same range is being followed: Bitcoin
Bitcoin has spent weeks oscillating between the $59,800 and $63,300 range after staging a recovery from a low in early June near the $58,000 level. After today’s price decline, Bitcoin remains near the upper end of that range, rather than breaching below it.
Short-term indicators remain to the buy side The MACD histogram continues to be positive, and RSI7 is hovering around 60; it still has some room but has not gotten into the overbought region. Short-term moving averages continue to hover around current levels, indicating that the buyers have continued control of recent direction. The trading volume continues to remain in a tight range and no sign of panic selling is seen despite today’s dip.
The bigger picture is less promising. Bitcoin continues to trade well beneath its longer-term 200-day moving averages, which sit in the $74K to $76K area. It’s possible to say that the latest rally has been beneficial in terms of short-term momentum, but not in terms of changing the overall trend.
The next big hurdle lies at approximately $63,300 and $63,900 per coin. If there’s a breakout in the upward direction in this range, it will contribute to a further strengthening of the recovery process. However, if once again the buyers prove themselves unsuccessful, the next important supports are at $62,500, then at $61,400 and $59,800.
Silver is showing some weakness
Silver’s chart looks significantly weaker than Bitcoin’s. It rallied to form a peak in February and then sold off through several months, and then in the session today we pushed the support region between $60 and $62. This had previously supported prices two times since April. Breaking support twice usually opens the flood gates as traders that bought the earlier advances come running for the exit; support previously is now resistance.
As long as silver quickly reclaims back above that mentioned support range, the market bears are likely to stay in control, having the next major support hovering around the price levels of $50 to $52.
Gold is holding the key level
At the time of writing, gold is sitting between Bitcoin and silver. This precious metal has corrected from its high back in Feb. but has still continued to trade within the broad range. This is the range that has been in this place for multiple months.
Today’s price is hovering close to $4,056 and testing the lower edge of the $3,800 to $4,140 support zone. Unlike silver, that level has not broken yet. If the market bulls are able to defend it again, gold could continue trading sideways. If it fails, the next major support comes closer to $3,400. Compared with silver, gold still has time to stabilize before the chart turns more bearish.
Who is the strongest asset in the group
Although all three assets fell, their charts look very different. Bitcoin is still holding its key support range, gold is testing support, and silver has already broken below it. That leaves Bitcoin in the strongest technical position of the three. As long as it continues holding its range while gold and silver weaken, buyers remain in better control.
