tips for traders
tips for traders

Tips for traders, 15 June 2021

The G7‘s meeting last week was a particular focus of many traders; however, the meeting did not cover the current situation except for recovery from the pandemic recovery. Some people had anticipated that there would be much discussion of cryptocurrencies, Bitcoin in particular.

There was an announcement by the president of El Salvador that Bitcoin will be legal tender from September 7, 2021. Some of the discussions include the risk of cybersecurity with ransomware, which utilizes cryptocurrency to flee with the ransom.

On the other side of the world from the G7, in Central and Latin America, a wave of countries are considering Bitcoin as legal tender. This applies to countries that have weaker currencies, like the Brazilian real, Argentine peso, etc.

The biggest question is what might happen to these countries and their relationship to other nations in terms of economy and currency. Another question is whether Bitcoin can really solve their currency issues. Only time can tell, as usage will start in the next two months in some cases.

With these factors known, two instruments, gold and Bitcoin, are now in view: gold because risk is still there and Bitcoin because of the issue of legal tender in multiple countries.

The price of gold formed a daily black hammer, which might signal short-term bounce. However, the price did not bounce from its Fibonacci retracement at 61.8%, so it could hit this area, but this is not a certainty. If the price can finalize its bullish flag pattern, a good entry might appear.

The price of Bitcoin has generally remained in its sideways range after its plunge on May 19, 2021. It is still moving between $30,000 and $41,000, with the latter area being retested now.

If the price can breach $41,000 strongly, it might not touch the lower area again. For now, it is still safer to pay attention to both areas and see in which direction the price might break out.

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