Breakout or Breakdown - Gold, Silver & Bitcoin
Gold has been trading in a very tight range ($65 or approximately 3%) for the last month. At some point, this trading range will be resolved by a breakout. The same thing is happening with silver but the range has been wider at around 11%.
Gold and silver are in well-defined uptrends, so it makes sense that most are expecting a bullish breakout. I'm bullish on gold and silver longer-term but in the short-term anything can happen, especially around the US presidential election next week.
Be careful if you are trading here as the short-term direction is yet to be determined and front-running a breakout can end badly.
There's also a chance that price continues to trade sideways and like I've pointed out before, the longer gold and silver trade in a confined range the bigger the breakout will be.
Stay tuned as the next couple of weeks should make for a very interesting end to the year and some great trading opportunities in the precious metals and related stocks.
Big Test For Bitcoin - 14K
Right now Bitcoin is threatening to break out above the June 2019 highs around 14K ($13,880 to be exact).
If the price of Bitcoin can get above 14K the odds increase of a rally back to the all-time highs near 20K. That would really get the crypto fanatics excited and could ignite a fire in the smaller, lesser-known cryptocurrencies.
Last week I wrote a blog post, Do You Remember The Crypto Bubble? where I shared my experience trading crypto/blockchain-related stocks back in 2017. I also point out some stocks that are still around and can be used as a proxy for trading actual Bitcoin or cryptocurrencies.
Hang on to your hat, if 2017 was any indication we all know that anything is possible when it comes to the wild world of crypto.
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