Bitcoin broke the $12,000 resistance again on Sunday and stayed above for longer. At the time, the price is oscillating around the critical barrier. For margin traders, volatility is an essential factor. BTCUSD has been moving up and down in the last hours. What a great time to trade crypto.
Bitcoin had an amazing performance. The coin rose 2.4% over one day, 7% over a week, and a stunning 30% over the last 30 days. Since the beginning of the global pandemic in early march, bitcoin gained over 211%, moving from $3875 to $12,095.
This is the last significant resistance level before $15,000. Everybody is interested in trading no only bitcoin, but any other major crypto should take a closer look at what’s going on with BTCUSD charts this week.
Gold has the time of its life as well. XAUUSD established itself above $2000 per ounce for good, and it’s trading at around $2030 on SimpleFX at the moment. Both bitcoin and gold have similar fundamentals as they are sought after in times of recession, and especially monetary crisis.
As long as the central banks are printing money in what has been so far an unsuccessful effort to stimulate the economies facing the second wave of the pandemic, we should expect a strong performance from the two assets.
What are the threats? It’s making it illegal in some major markets for bitcoin, but this risk is mitigated by the decentralized and anonymous character of the crypto. For gold, there’s always a possibility that that governments agree to dump the asset, but this at the moment seems to be unlikely, as gold is an excellent alternative for fiat currencies. At the moment, there are no attractive investment alternatives.
Congratulations to all of you who ride a wave. Remember, if you stack gold or bitcoin, you can always hedge your long positions with leveraged short orders on SimpleFX.