Technical Analysis

This week, Peak Blockchain brings technical analysis into the blockchain knowledge base. This will provide more down-to-earth details on blockchain technology. The technical analysis is a bit different, as it is not just focused on the blockchain industry, but also the world at large. By understanding how blockchain technology can be used to improve various aspects of the world, we can create a more efficient and effective system overall.

• S&P 500 (SPX): The price has been continuously rising for two consecutive months. The technical is showing strong buying from bulls, and the bears are losing their hold. It is currently around $4,000, and this is a make-and-break situation. If the macroeconomic condition persists to be on the relaxed side, we may see a big move in the future. The price is at its strong resistance point and is expected to hover around it for some time. This will be a crucial decision point, and we must keep looking at global events. The situation in China is worsening; any big news will directly impact the stock markets. Even there is news of covid spreading that may trigger the downtrend again.

• Bitcoin’s Price Action: As predicted, the market made a low of $15,476 which is well in the range of $15,000 –$16,500 that was shared earlier. The technical show that the market may take a bounce at current levels or after dipping a little lower. A buy range from 14,000 ––$17,500 is worth trying with a small amount for quick profits as it is a risky bet. The position must be taken with the objective of short-term investment. Any significant movement or new all-time highs are still far off from reality. A bullish divergence is possible and should give at least 10-15 % returns from the upper side of the buy range. The above analysis is only valid if this week’s closing price is above $17,000. One can start booking profits around the price level of $18,500.

• Crude Oil: We can see how Crude oil is behaving in the chart below. The constant buy and sell pressure has given no route to the price but to sustain in a zone for the time being. There is a constant demand for energy resources, but with recession fears looming, there is scope for the price to get again stuck in a range. The price is likely to show some bullish action in the near term as the demand rises. We can expect the price to reach around $90, and thus we can.

• Bond Markets: Bond Markets are forward-looking. It functions in advance and gives reliable indications of economic health. The 2Year US Bond Yield has reached above 4% and has been hovering around this level for the past ten weeks. This might be a contributing sign which shows that the Fed has reduced its pace of increasing the interest rates and it is assessing the situation. Currently, the yield is around 4.28%, and other long-term bond yields are consolidating, too, with a similar trajectory. There are signs of reversal or relief to the bond markets. But there is no confirmation yet.

• Gold & Silver: The accumulation has been going around for the past 2 months and now the breakout rally can happen. The price of gold is around $1,800 and the price of silver is $22. This huge accumulation is going to result in a big rally in the coming months. Silver is likely to reach around $28 or $30 as the first target. Later, the price is expected to reach $50. While the price of Gold is expected to breakout above $2,000 which is its long-term resistance point.