On Monday and Tuesday, the American dollar continued its epic fall. Bitcoin and gold made a real competition with each other. There were two goals. Which of them would grow stronger. And how much money will be lost by the short traders at the close of their positions by the margin calls.
Yellow metal rushed even faster to new highs, showing almost $100 growth in 2 days. A small correction looks like just a rest for the bears to lick their wounds. On Monday gold showed an absolute historical maximum. On Tuesday, the stops were knocked down even $40 higher. And, at any moment, a third set of stops, set at $2000 per troy ounce, could be knocked down.
Probably after that, there will be practically no bears left in the market shorting the yellow metal. On the other hand, gold sales may increase from large banks fixing profits. It is important for their management to show good reporting to their investors right now. Yes, gold could still grow a lot in a few years. But in a few years, the management of the banks will be different.
During the 1.5 month flat period, we constantly drew the attention of our subscribers to the next important moment. The longer the price stays in a narrow range, the stronger the impulse will be after it exits. And such an exit took place on Sunday. The first cryptocurrency has risen to the level of $10,000. And on Monday, the mass shutdown of the shorts by margin calls began. The price jumped to $11,400 in a moment.
In just a few days, the bitcoin jumped 20%. And just as importantly, the second day in a row closes above the $10,000 critical level. If the price stays here for a few more days, it could completely turn over the minds of investors and speculators. What has been considered “expensive” for the last two years (above 10.000$) will look cheap. And the next target will be last year’s highs at $13,500.
What’s waiting for us today?
03:30 Q2 Consumer Price Index in Australia
10:00 ZEW Institute Index of economic expectations for July in Switzerland
20:00 US Federal Reserve Interest Rate Decision
20:00 Press conference of the US Federal Open Market Committee
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