Crypto

Bitcoin futures blasted off on Monday not only past the prior high for the year but more importantly it has traded above the descending top that has defined price action since Bitcoin futures began trading at the end of 2017.  This upper level of resistance had only been touched upon at the peak of the 2019 rally and once more last month on the June 2nd’s intraday high.

Just like the U.S. Dollar fell through a key support level late last week, Bitcoin also moved past a key resistance level in trading today. Both of these moves have two things in common first these levels were both based on extremely long term Fibonacci retrenchments spanning vast amounts of their all-time charts. Secondly these recent breakouts represent the high likelihood that both the U.S.

Today I wish to touch upon something other than Bitcoin futures, and that is silver. For weeks I have contemplating how silver will likely reach $25 before gold reaches $1900 o Bitcoin reaches $11,000. This is because I believe silver is the most undervalued and also has the most upside potential in the near future.

With BTC futures trading as calm and stable as ever before we have to ask ourselves when this period ends and BTC breaks which direction will it favor? While the fundamentals are bullish we cannot ignore the descending top BTC has yet to break on every attempt is vastly approaching. Currently this resistance channel sits at approximately $10,000.

Not since March 2019 have we seen the upper and lower Bollinger bands come as close as they are now only $600 apart. The narrowing range of the Bollinger bands is a sign that the volatility has fallen and remained at an extremely low level. The previous occurrence of such a narrow gap between bands directly preceded a $10,000 price advance.