Technical Analysis

This week, Peak Blockchain consultants 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 inflation has finally stopped rising for now and has entered the consolidation phase. The prices of precious metals are rising, and the interest rate hikes are expected to be less rigorous than earlier. S&P has been doing well till now and it is expected that a small upside move is possible, beyond which the market will go sideways or start moving down. The scope of abrupt rise has fewer chances. Also, the inflation rate is still high which needs further interest rate hikes that will help in curbing the excess demand. As of now, inflation has only stopped rising but hasn’t started reducing. Though YoY inflation has reduced as the last year’s inflation data was high as well. But the MoM inflation has not shown any signs of relief.

• Bitcoin’s Price Action: As predicted by Peak Blockchain consultants, the price of Bitcoin will rise, and we have achieved a minimum of 6% profits till now. While our original target was $18,500 but it better to start booking profits from current levels of $18,000. More than 6% profit is astonishing in a span of 2 weeks. The market dynamics are changing and there are questions being raised on the Binance’s liquidity. Thus, there is a slight possibility of an adverse market situation in the coming days if things turn bad for Binance. Bitcoin’s price is likely to stay in a zone for some time that is between $15,000 to $20,000. This range is likely to hold for the upcoming months.

• Crude Oil: The chart of crude oil shows that the price is range bounded. 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 stay in a range between $60 to $90.

• Bond Markets: Bond Markets are forward looking. It functions in advance and gives reliable indications of economic health. The Fed’s pivot can be around a 50 bps hike in the interest rates. It is likely that the aggressive rates hikes will reduce. It must be seen how the market will react to it. In short term it might be a positive news for some, but in long term it is less likely for a sustained rally. The 2 Year US Bond Yield has reached above 4% and has been hovering around this level for the past twelve 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.

• 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 around $24. This huge accumulation is going to result in a big rally in the coming months. Silver is getting higher traction than Gold and is likely to pump even further. It 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.

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