Cyclical bottom looms for Bitcoin, gold and silver

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Fundamentals

Markets are volatile today due to the Fed’s discussions on cutting interest rates and interest rates. The Fed has decided to cut by about $ 30 billion per month, so by March we’ll be done with the cut. The 10-year rating climbed last week from 1.30 to around 1.73, near the previous peak in 2021.

It appears that interest rates are causing a major double dip on the 10-year note, said Patrick MontesDeOca, CEO of the Equity Management Academy. If we get out of that neck, we’ll test levels 2.00 to 2.50 on the 10 Year Note.

If interest rates continue to rise, it will put a lot of pressure on the economy. Interest rates indicate that inflationary pressures are increasing and that the Fed will have to react one way or another. So far, the Fed has done nothing but talk. They always leave the possibility of changing their mind if the economy demands it. The Fed was considering a 2% inflation target as a proxy for raising interest rates, but now its argument is to wait until interest rates rise when unemployment returns to normal.

The Omicron is spreading like wildfire as children return to unvaccinated schools that continue to disrupt the economy. Sporting events are closed. Some schools are returning to distance education. All signs that the economy is still facing difficult problems and uncertainty.

Metals fundamentals are very bearish, MontesDeOca said. This is usually when long term funds are made.

Gold

Source: ema2trade.com

Gold is down $ 36 and Silver is down around $ 1.08. It’s a very volatile environment. The markets seem to be taking all the bearish rhetoric about fundamentals into account.

According to our Variable Price Dynamics Indicator (VC PMI) gold is extremely oversold and we are in a major support area between $ 1,803 and $ 1,775. Trading below the $ 1,817 average gave us bearish price momentum this morning. Gold fell below the weekly average price of $ 1,817 and activated the extreme level below the average buy signal. The bottom seems imminent. A close above $ 1,794 will confirm the bottom is reached. The weekly buy level 2 is $ 1,775, which would also confirm the weekly low. If you are an aggressive trader you can start building up positions in this area and use a stop on a close below $ 1775 and see what the market is doing.

Silver

Even though the price of gold may go down, you want to watch these levels for a sign that we are starting to move up. The price has come down to a level with a high probability that the market will revert to the mean.

Source: ema2trade.com

Silver has hit a low of $ 22 and is extremely below the daily and weekly averages so the market is heavily oversold. A close above $ 22.75 on the weekly would confirm that the market will go up. We activate a monthly alert signal indicating that if we close above $ 22.02 a monthly trigger will be activated.

Fundamental news regarding tapering, omicron and tapering seems to be funds in silver and gold. We are looking to capture this background. The fundamentals seem to have been discounted by the markets.

Price momentum vs. Momentum of the trend

The last price is not the average price. The average price is the average price for a given period, day, week, month or year. Price momentum is the speed of price in the pattern or the larger trend, which is the momentum of the trend. For the money, the biggest trend is bearish from $ 25.42, which is the trend momentum. Price dynamics are based on the 15 minute bar to activate artificial intelligence based signals from VC PMIs. Price momentum can go with or against the momentum or the larger trend trend.

Stockings are usually made against the trend. They typically transform the market on a shorter term basis and then expand for longer periods. So the lows start with the 15-minute mark, then the daily, weekly, monthly numbers and finally the annual prices.

Bitcoin

Source: ema2trade.com

We are in the business of accumulating Bitcoin supply on the basis of weekly and daily numbers. The daily buy trigger is at 42,170 and the lowest at 42,375, so we are approaching what could be a major long-term buying opportunity for Bitcoin. The market will move down and activate this level or rise and close above 43,883 which will activate the weekly signals.

Energy markets

Source: ema2trade.com

Crude Oil is trading at $ 79 or $ 80. There has been little news in the energy markets, but these prices are not positive for the economy. It’s sort of a tax on the economy on top of everything that’s going on fundamentally. This puts the Fed in a difficult position as the danger is that the economic impact of the omicron could slow the economy. It could curb tapering and hike in interest rates.

We will likely find that the markets overreacted to the interest rate rhetoric because nothing was done except some reduction. Then the markets will return to their average. Once all the closeouts of margin calls and stops are complete, real buyers will enter the larger trend. The biggest trend for Gold, Silver, and Bitcoin is towards much, much higher prices as stimulus policies around the world continue to be robust.

If the Fed has to change interest rates, markets will react violently to the upside. It will become clear that interest rates will need to go further into negative territory. Be patient. We are entering an incredible opportunity on the long side of Gold, Silver and Bitcoin.

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