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Bitcoin, gold and silver have reached significant price levels where the market could soon turn in the trend, as the first technical indicators indicate a possible reversal.
As of this writing, BTC, XAU, and
Bitcoin Bulls Emerge Amid Death Cross Themes
Throughout the past weekend, traders and crypto watchers have been discussing the death cross, a technical formation in the BTC/USDT trading pair that… It is expected to determine the next trend for Bitcoin.
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Bitcoin was trading at $95,624 As of this writing, it continues its decline in a well-defined bearish channel that has dominated price action since early October.
Every attempt to break the upper border failed, and the price is now testing the support of the lower channel. Price consolidation at these levels indicates that Bitcoin is preparing for a decisive move.
The volume profile highlights a large pool of liquidity at $100,000-$105,600, which could form resistance above. However, with the green horizontal bars representing the volume of purchases, buyers are waiting to react to the price of Bitcoin in these areas. Such buying dominance could be witnessed by the leading digital currency.
Bitcoin has repeatedly rejected the $100,200 level, citing strong selling pressure from pending orders and large players distributed near the psychological six-digit mark.
The indicator indicates RSI (Relative Strength Index) At 41 it indicates a downward momentum, but with the possibility of forming a positive divergence when the price approaches the bottom of the channel. The AO (Awesome Oscillator) indicator remains negative, but is trending down, indicating a weak downward force. This is a typical introduction to a relief meeting.
Immediate support is found at $94,504, which indicates the lower boundary of the channel. A break of this level threatens a deeper pullback towards $92,000-90,000, where the next support band is in a visible range of the volume profile (VPVR).
However, if buyers defend this zone and force a rebound, Bitcoin could break above the immediate resistance at $98,000, followed by the critical breakout zone at $100,198.
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The next big change in the trend depends on whether Bitcoin maintains the support of the channel. A confirmed break above $100,000-102,000 would signal a change in uptrends, while a support break would accelerate the downward trend.
Gold needs to fill the imbalance due to FVG
Gold is trading near $4,081, steady after a slight drop in price on November 14, as the long red candle shows. This decrease resulted in a fair value difference (FVG) of approximately $4,135 – $4,188, representing Inefficiency in the XAU/USD market that needs to be addressed.
The chart shows a typical example of oversupply, where the bearish volume profiles (red horizontal bars) overlap with the middle line of the fair value gap (consequential breakout or CE) at $4,135.
Break and close above this average line on the 4 hour frame confirms the continuation of the upward trend.
The price of gold is currently trading at $4,081, with bullish volume profiles (green horizontal bars) above, indicating that XAU is in bull hands. This adds credence to the theory that the price of gold could extend its rally to compensate for the imbalance due to the fair value gap.
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Below this is a deeper demand zone at $3983-3938, which has historically attracted strong buying. If the price drops to this area, a strong bullish reaction is likely.
The momentum remains weak. The RSI at 42 is trying to recover slightly, but remains below the equilibrium level, indicating that sellers are still in control.
The Awesome Oscillator (AO) is very negative, confirming a continuous bearish momentum, although the bars are contracted, showing first signs of exhaustion.
For the rally to continue, gold must recover the value gap right at $4,135. A clean break and closing candle above this area would indicate a continuation of the rise towards $4188 and major resistance at $4244-4272. On the contrary, failure to maintain the $4061 level poses a risk of slipping into the demand zone before any recovery.
Silver risks losing support due to the trend line
Silver is currently trading around $50.88, trying to stabilize after a sharp decline from the recent high of $54.37.
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The correction found temporary support near the 61.8% Fibonacci retracement at $50.96, which has now become resistance, in line with a rising support line. This indicates that buyers and sellers are strongly defending this area.
Volume profiles show a large knot between $49.80-51.20, indicating high liquidity and strong interest; This area acts as a price magnet.
A decisive stop above the 61.8% Fibonacci retracement level could open the door again towards the 78.6% Fibonacci level at $52.46 and eventually a retest of $54.37.
However, a drop below the trendline will reveal key support levels at the middle of the 50% Fibonacci range, at $49.91, and at the 38.2% Fibonacci retracement, at $48.86, both of which are in the previous strong consolidation zone.
Momentum indicators are leaning towards bearish neutrality. An RSI at 45 indicates an attempt to recover, but remains below its median line, indicating indecision after recent selling pressure.
The Awesome Oscillator indicator prints red bars, suggesting that the downward momentum is still in control, but is weakening.
In general, silver is at critical support where the bulls have to hold the trend line. A drop from here could spark a new rally, while a decline risks a deeper correction towards $48-$49.
