Gold and silver ready to break higher while bitcoin languishes – market analyst

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(Kitco News) – The gold market appears to be ending its consolidation period. According to one technical analyst, it is on the verge of testing new record highs above $2,000 an ounce.

In a recent interview with Kitco News, Michael Moor, creator of Moor Analytics, described gold‘s month’s long price action as a macro bearish consolidation period. He added that the gold market could see one more move to the downside, but it is ultimately ready to push higher.

The comments come as gold prices rallied to a new two-month high, testing critical resistance at $1,850 an ounce. Moor said he is looking for a break above $1,866 an ounce to confirm that prices are heading back to their all-time highs.

“If I can push to my initial resistance level, then I would look for a decent penetration above that,” he said. “Ultimately, I think with a breakout, we could see a lot higher prices than the 2020 highs.”

On the downside, Moor said that he sees initial support at $1,748.60 an ounce.

Looking at silver prices, Moor said that similar to gold; silver is building a solid base and a sustained break above $24.43 an ounce could signal a new breakout move.

“My gut feeling is that while silver has a solid base, it remains in major consolidation before it runs up to create a whole new phase to the upside,” he said.

Last week, silver saw significant bullish momentum as prices pushed to a two-month high above $24.50 an ounce. However, the market has not been able to hold those gains. Spot silver last traded at $23.72 an ounce, down more than 1% on the day.




While Moor is bullish on gold and silver through 2022, he expects bitcoin prices to struggle as the market continues to lose momentum.

While bitcoin saw significant moves in 2021, the digital currency is seeing its worst start to the year since it was first launched in 2008. The entire cryptocurrency market has seen its market cap drop by $1 trillion. Bitcoin is currently down more than 50% from its all-time highs in November.

Moor said that his initial line in the sand for bitcoin is around $37,000 per token. He added that if the market can hold this support, then it might have a chance to regain some of its luster. However, if this level can’t hold, prices will fall much lower, he said.

The comments come as Bitcoin currently trades around $36,900 a token.

“There is a bearish divergence between where we are right now and the previous peak and this is suggesting we will see a failure below,” he said. “If prices start to break significantly below 37,000, then Bitcoin will be in more in trouble. It’s probably going to head back down towards, 28,000 or lower.”



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