Bitcoin and Gold: Prices benefit from political uncertainties
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Bitcoin and Gold: Prices benefit from political uncertainties

By Federico Izzi - 5 Aug 2019

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After last week’s downfall, with Trump threatening to increase China’s tariffs again, bitcoin and gold become safe-haven assets and their prices rise.

The night also saw the devaluation of China’s currency, the yuan, against the dollar, reaching a low that had not been recorded since 2008. This would disrupt the trade agreement between China and the United States and would make the imposition of new duties by Trump ineffective, which should start on September 1st. 

With the S&P 500 falling below 2,900 points, a level it had abandoned since the beginning of June this year, this only increases global tensions. It is precisely these tensions that frighten investors who return to position themselves on the millennial safe-haven asset that is gold with a rise that reaches 1,470 dollars, the highest of the last six years, prices abandoned in April 2013. 

This also benefits bitcoin, the digital gold, with prices rising again just a step from 12,000 dollars, reviewing the levels in mid-July and cancelling the bearish phase that had characterised the past month. 

Along with gold, the price of bitcoin surprises again and in less than 24 hours it has risen by 10%. Added to the one of the last days, from the lows of July 28th, bitcoin recovers 25% of its value. 

Source: COIN360.com

Very few declines today

Today’s trend shows a clear prevalence of positive signs, to the extent that among the major capitalised it is necessary to go down beyond the 30th position to find a first negative sign: VeChain (VET) which drops by 2% and is the first red sign in the ranking.

Among today’s falls, there is also the price of Next (NET). which occupies the 86th position and which today drops over 13%, the only double-digit fall among the first 100.

Litecoin chart by Tradingview

Litecoin’s halving

The Litecoin halving occurred at 12.20 PM at the 840,000th block. This led to a strong upward jump in the price: litecoin, in fact, in a few minutes scored a rise of more than 10%, driving the price up over 100 dollars. Litecoin, therefore, manages to celebrate this important date, which made its reward for miners for each produced block go from 25 to 12.5 LTC, scoring a 3-digit value.

Litecoin temporarily recovers the 105 dollars, the highest levels of the last month. In addition to being very important static resistance, a break of 105-110 dollars would project the price to the next step in the $120-125 area. Conversely, it would be a decidedly bearish signal for Litecoin to return below $90 within the next few days. At the moment, however, these are hours of celebration for Litecoin.

The dominance of Bitcoin rises

The market cap returns above 310 billion dollars, levels abandoned in mid-July. 

Bitcoin’s dominance shows that BTC has taken off, setting the record of recent years: today it reaches 68% of market share, a step away from the record of 70%, levels that were not recorded since March 2017. 

Ethereum, on the other hand, fell to 8%, despite ETH’s daily rise of 5.5%, reviewing the 232 dollars, the highest prices in the last 20 days. 

The same is true for Ripple, which rises 3% recovering the 32 cents of the dollar, but remains within a congestion of 30-33 cents of the dollar. The modest rise fills the percentage of dominance that falls below 4.5%, the lowest levels since December 2017.

Bitcoin chart by Tradingview

Bitcoin (BTC) Price

Bitcoin recovers the relative highs of July 12th, before the sinking that had characterised the whole second half of July. Bitcoin recovers this level and, on a weekly basis, scores one of the best five rises with over 20% climb in just 7 days. It is the best in the top 15. Only Monero (XMR), which occupies the 11th position and scores a 17% on a weekly basis, manages to keep up with the pace of bitcoin. 

Bitcoin comes out of the Bear’s claws and recovers about 30% from the lows of mid-July. It is a rise that brings back confidence. In fact, in the last 24 hours, the trading volumes are back on the rise with a +30% with respect to the average of the last days.

Ethereum chart by Tradingview

Ethereum price (ETH)

Ethereum manages to keep itself above the threshold of the dynamic trendline with prices that, after having tested the 205-210 dollars, return to push again beyond the quota 230 dollars. 235 dollars is the level of current resistance, former support that if, were to be violated decisively, would push prices in the area 245 dollars, the next level of resistance to be reclaimed by Ethereum.

A return to $210 would bring back fears of downward speculation, but at the moment it would seem an unlikely hypothesis on this very positive day. 

 

Federico Izzi
Federico Izzi

Financial analyst and independent #trader – S.I.A.T. & Assob.it partner. He operates actively on stock and derivatives markets (futures and options) since 1997. A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years. He participates annually as a speaker at the ITForum in Rimini since the 2010 edition and InvestingRoma and Napoli since the first edition of 2015. He is a guest and market expert on the "Trading Room" and "Market Driver" broadcasts of Class CNBC, Borsa Diretta.tv and on the evening news of Traderlink. Since July 2017 he is a permanent guest on LeFonti.TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field. Since May 2017 he is officially a Bigbit technical analyst. He was interviewed as a #cryptocurrency expert for Forbes Italia, Panorama, StartupItalia and DonnaModerna. He was recognized as the first Italian technical analyst to have published the first secular cyclic analysis on #Bitcoin. Periodically publishes articles on ITForum News, Sole24Ore, MILANOFINANZA, TrendOnLine and Wall Street Italy. Federico Izzi is... "Zio Romolo".

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