Bitcoin is trading for $65,018.98, up 0.94 percent this day and up 0.63 percent this week. Gold is trading for $4,085.24, silver for $58.88, and the SPX for $7,411.97. Four very different assets are telling four different scenarios on the outside, but 3 are doing roughly the same on the inside.
Considering the situation, three of these assets are going through almost the same thing, which is sitting below a level that has already failed two or three times in the time span of five to seven weeks. The largest cryptocurrency is an exception here in a specific way.
The long-term trend is not supporting the Bitcoin recovery
The previous session’s pivot point for Bitcoin closed at $65,025.84, only around seven dollars away from the current price. The 7-day SMA comes in at $65,233.05; the 7-day EMA is only at $64,919.00. And this is neither really a reference point above nor below the current. The 30-day moving averages are even lower down the chart, indicating a decent month-long climb.
On the other hand, the 200-day SMA is just $72,129.73, whereas the 200-day EMA lies around $74,386.48, and Bitcoin is currently trading $7,100 short of the first and $9,300 short of the second indicator. The recovery made over the last month could not manage to breach the aforementioned level, which measures the extended period trend.
However, Bitcoin declined below $71K for the month of June and took a correction till the $59,800 level. It corrected then in late July; it made $67,255 and dropped then to $61K again. At the time of writing, MACD shows upward momentum and is turning bullish, whereas RSI has gone above average. The price has managed to cross a few significant Fibonacci retracement levels for a longer trend. But the longer term has yet to fully turn out to be very bullish in nature.
Gold and silver are falling but at different paces
Gold’s chart tells a story with more edge to it than Bitcoin’s. Since late June, gold has tested the $4,100 to $4,130 zone three times. The first two failures were slow; the price was just in the range for days before rolling over. The third was different as the gold gave a breakout through the zone entirely in late July and that was followed with a spike to roughly $4,160, then reversed hard and dropped back below $4,130 within days.
If we compare fast breakouts and slow rejections, the fast breakout, if it fails, generally ends up with a hard-to-break resistance in comparison to the other mentioned.
Silver has been trending below the support level and tested the $59.8 and $60.9 zones three times following the time period from late June, and it has failed in each attempt. For the volume metric, the value has not seen an increase at the time when this asset was pushing upside. The support is now shifting to the upside, and that is followed with the latest pullback that is holding above the marked low near the level of $56.3. The thing to note is that this is creating a tight range that could give a breakout in either direction.
The S&P 500 has now formed a range
The S&P 500 made an all-time high near 7,600 in early June and hasn’t really gotten back there in any serious way. A couple of bounces off lows were tried once in early July and once in the middle to late July but both stopped around the 7,400 level, around 150-200 points below the top. The chart on the S&P 500 shows three support levels that haven’t been challenged since the original climb off the April low; support can be found near 7,000, 6,600, and 6,400. It’s spent nearly two months trading in a range underneath its own cap.
