Gold and Bitcoin have seen some selling pressure over the past couple of days. Gold peaked on Monday and Bitcoin late on Wednesday. The key reversal patterns were unmistakable in both. The metal and the crypto both made recent highs and had dramatic sell offs from the highs.
On Monday as it looked like Gold was going to the moon and traded as high as 1442, though it fell apart falling about 3% since. Our target remains 1380-1390, which should be the lows of the current down move. In identical fashion, Bitcoin was exploding on Wednesday making 3-year highs before reversing 2% from the highs.
These patterns are common in all markets, traders and investors chase markets higher on the fear of missing out or short covering. Once markets regain equilibrium, they usually consolidate looking for support or resistance. In this case, both gold and bitcoin are searching for support. Both markets should resume there upward momentum after finding support, Gold 1380-1390 and Bitcoin around 10,000.