The Most Interesting Price Charts Of The Week: Gold, Bitcoin, Ether, Analyzed

Let’s start with the price of gold because hardly anyone cares anymore and that might be a sign of something, emphasis on the “might.” When you’ve got a hot, new cryptocurrency every hour and a blazing stock market that just won’t stop, why would you even be looking at something as so-last-century as a boring precious metal?

It brings to mind that old Jonathan Sacks quote about investing: “The wisest rule in investment is: when others are selling, buy. When others are buying, sell. Usually, of course, we do the opposite. When everyone else is buying, we assume they know something we don’t, so we buy. Then people start selling, panic sets in, and we sell too.”

Here’s the monthly gold chart:

From the 2008 low of 85o to the current price of 1833 is more than a double. This used to be considered a decent return but now, compared to a cryptocurrency, it amounts to “ho-hum.” Note that, despite the selling from mid-2020 to here, gold remains in an uptrend, well above the Ichimoku cloud (a mix of moving averages).

Here’s the daily chart for gold:

2 items of interest here to the price chart analyst: 1) the early August price low reaches the lows of March and April but…the MACD indicator (below the price chart) is diverging from price, positively. That moving average convergence/divergence measure may be giving off bullish vibes.

And 2) that downtrend line (dotted red) which connects the early June high with the mid-June high is finally broken through this week. Is it a wake-up call or a false signal? Anything can happen — these are volatile global markets — but the price action here is changing.

Ethereum’s daily chart shows an example of the violated downtrend line:

Connecting the 2 summertime highs gives us the downtrend line. You can see that it’s broken above in late July. Take a look at the subsequent price action. Artificial intelligence, machine learning and actual human beings take note of this kind of movement and it all has an effect.

Ethereum’s monthly chart is even more fascinating:

The May to July sell-off is definitely over. That August closing price is a new all-time high for the cryptocurrency and we’re already above that in early September. The previous mid-May high up there above 4250 is likely to be a significant resistance area. That is, some holders may find it comfortable to sell since they missed it last time around.

Compare this to the Bitcoin monthly price chart:

No new monthly high, either on a closing basis or otherwise, for Bitcoin. When you hear that Ethereum may now be overtaking it as the prime cryptocurrency, you can double-check this chart for confirmation. The money seem to be choosing one over the other.

Not investment advice. Do your own research and always consult with a registered investment advisor before making any decisions.