Bitcoin is leaning towards USD 3,000, the price of gold is expected to grow to USD 1,400 after the drop in 2018 and EUR/USD are still waiting for the charts to clarify the trends for the rest of the year. These are the predictions made by Aforti Exchange analysts, in a report conducted by Marek Paciorkowski, director of Financial Markets.
As previously expected, the next months will bring declines in the price of Bitcoin, leaning towards USD 3,000. When analyzing the price evolution from the technical standpoint, it is clear that Bitcoin has a strong resistance level of USD 5,100 and unless there is a permanent comeback above that price level, then the target will be at the lower values, around USD 1,779-2,457.
“When taking into consideration the technical analysis, it is clear that the attempts to stabilize the BTC price at the level of USD 4,000 have failed and did not result in any decisive growth attempts. Therefore, it is clear that the downward trend remains dominant,” says Paciorkowski.
On top of this, the successive correction waves will further the move towards the level of USD 1,779 where it is expected that the first major ‘BUY’ orders will appear, which in turn might periodically raise the value of Bitcoin.
“Nonetheless, taking into consideration the patters, I maintain the position that in the longer-term perspective, we can be seeing the price of Bitcoin drop as low as to USD 100,” shows the Aforti Exchange analyst.
Gold is trending upwards
Those who invested in gold closed December 2018 in exceptionally good moods since the price has been following an overall growth trend since the beginning of 2016 (see the thin red line indicating the growth). Even though in 2018 we witnessed a significant drop in the gold prices, the end of the year was positive as gold prices managed to partially recover.
Having well overpassed the USD 1,195-1,231 zone, it indicates a preliminary signal that the level of resistance of USD 1,350 will be attacked in the coming months of the year. This readiness for such a significant increase will be confirmed as soon as the price is maintained at the level of USD 1,255.
“Looking at the long-term evolution of gold prices, taking into the consideration the technical arrangement of inverse head and shoulders formation, the expectation will be to overcome in 2019 the price barrier of USD 1,400 and approach the main line of the downward trend, which is currently estimated at around USD 1,440,” says Paciorkowski.
EUR versus USD
“When it comes to EUR/USD, 2018 was definitely the year of supply. A year earlier, in 2017, the EUR/USD approached the level of 1.2000 and broke the previous downward trend, it was clear that 2018 will be the year for realizing the profits. Looking at the candlestick chart, we can presume that we are dealing with a return movement, confirming readiness for a larger growth in 2019,” says Paciorkowski.
Of course, the vicinity of level 1.1260 must continue to defend itself however, this does not change the fact that temporary drop to the level of 1.1090 is possible in the first months of the 2019.
When looking at the market in the perspective of next few years, the strong resistance will be the barrier of 1.20. If this barrier is permanent overcame, then the next barrier will be at level of around 1.29, which is the internal line of the downward trend.
“On the other hand, we need to take into consideration the downward trend with which we have been dealing since 2009. Therefore, if the price drops below 1.10 and the support barrier is breached, then this will be a signal for another wave of declines, which could result in reaching the level of 1.0520,” concludes the analyst.