Bitcoin, Gold, US Dollar Technical Analysis: Chart Patterns and Key Levels

Bitcoin has been weak over the past two weeks. However, there was a notable price increase on Friday. This price increase was due to US spot Bitcoin ETFs, which saw a significant surge in net positive inflows. The large inflows reflect growing demand and interest from investors, boosting market confidence and pushing prices higher. However, Bitcoin remains within the 30-week’s price consolidation in between $49,000 and $72,000. A clear break of this price range is required for the next clear direction.

On the other hand, the US dollar index remains in a sideways pattern after the release of the US CPI and PPI data. The slightly higher CPI reading suggests additional rate cuts by the Federal Reserve. This expectation has triggered a strong rally in the gold (XAU) market. The gains in gold on Thursday and Friday last week produced a positive weekly candle. A positive weekly candle after the inside week indicates bullish pressure.

Meanwhile, the US dollar (DXY) is trading near the resistance level of around 103. The important event for the week is the retail sales data, set to be released on Thursday. This data will provide further direction for the US dollar and gold. However, the immediate trend remains upward in both instruments.

Bitcoin (BTC) Technical Analysis

Bitcoin Daily Chart – Bull Flag Pattern

Bitcoin’s price has been consolidating within a bull flag pattern since March 2024. This consolidation indicates bullish price action on a broader scale. The price lows of August and September 2024 form a double bottom. Currently, the price is trading below the 200-day moving average at $63,377. Bitcoin must break above the 200-day moving average to continue moving higher.

Bitcoin 4-Hour Chart – Descending Channel Pattern

The 4-hour chart shows a descending channel, where a break above $63,377 is required for higher prices. The black dotted lines highlight the short-term support levels in Bitcoin’s price at $59,750 and $57,450.

Gold (XAU) Technical Analysis

Gold Daily Chart – Ascending Broadening Wedge

The bullish move in gold on Thursday keeps the strong uptrend active. The price is likely to remain within the ascending broadening wedge pattern. A break above $2,685 will initiate the next strong move higher. The RSI has rebounded from the mid-level, indicating the possibility of a bottom in gold.

Gold 4-Hour Chart –Ascending Channel Pattern

The 4-hour chart also shows a strong bullish trend in the form of an ascending channel. The price has found support at the $2,605 level, which is a key support of the 75-day ascending channel. The strong rebound from this support highlights strong price momentum. The positive close on Friday indicates further upside potential. Additionally, the RSI suggests the possibility of further upside in the gold market. However, a move above $2,685 is required to avoid short-term consolidation.

US Dollar Technical Analysis

US dollar Daily Chart – Trades at Key Level of 103.10

The US dollar has broken the triangle, and the price is now trading within the triangle pattern. However, the black trend line, drawn using the line chart, shows that the actual breakout occurs at 103.10. The US dollar index is consolidating at this strong resistance area and is awaiting further direction. The upcoming retail sales data will likely confirm the possibility of a breakout or continuation to the downside. Moreover, the RSI also indicates that resistance is approaching soon.

US Dollar 4-Hour Chart – Short-Term Resistance

The resistance is also highlighted on the 4-hour chart for the US dollar index. This resistance is determined using the black dotted lines, which represent the breakout target of the falling wedge pattern. Since the US dollar index has reached this target, the price may consolidate before deciding on the next direction.