Aibek Burabayev, Author at INO.com Trader's Blog

Bitcoin Still Shines Like A Sun

Posted on April 26, 2022 by Aibek Burabayev

In this post, I would like to show you what happens to the structure of the crypto market over time as new stars join the universe with hopes of taking down the shining star, Bitcoin.

Chart 1. Market Cap Comparison: Bitcoin, Ethereum, and Altcoins

The chart above starts in September of 2017. Both altcoins and Ethereum had a market cap of around $30 billion, while the main coin had more than double that at $72 billion. The latter started to rally at once, reaching the top of $231 billion by the end of 2017. Altcoins followed Bitcoin with a delay of one month; however, the growth was more robust and the market cap caught up with that of the main coin rising more than seven-fold. It was that very rare moment when the market cap of altcoins could touch the “Sun” of Bitcoin in the considered period. Continue reading "Bitcoin Still Shines Like A Sun" →

Gold Has Repeated Bullish Pattern

Posted on April 19, 2022April 18, 2022 by Aibek Burabayev

Back in February, I shared with you an updated monthly chart of gold futures with a completed Cup & Handle pattern just ahead of a potential breakout above the preset trigger.

Most readers supported the ambitious target of $2,800 for that exact pattern. So let's check on the chart below and see how it plays out these days.

Indeed, the bullish impulse gathered enough power to break above the resistance that acted as a trigger for this pattern. The volume increased significantly, as it was required to overcome the barrier and confirm the breakout. The RSI has supported that rally as it turned north, either. Continue reading "Gold Has Repeated Bullish Pattern" →

U.S. Dollar To Hit $121; Crude Oil To Hit $176?

Posted on April 10, 2022April 10, 2022 by Aibek Burabayev

It turned out that the dollar weakness we observed in February was about to be over right after the earlier update. I thought we would see more downside for the DX in the area between 94.4 and 92.5 (Fibonacci retracement levels) before the rally resumes, and most readers supported that idea. However, the rally started immediately.

The inflationary pressure underpins the dollar, as the Fed has turned strongly hawkish on the interest rate and tapering. Let us check out the updated daily chart below.

In my previous post, we saw the DX piercing down the dotted gray uptrend. Those punctures turned out to be false breaks, as fallouts of the channel were temporary, and the move up resumed overcoming above the preset confirmation level of 97.4. Continue reading "U.S. Dollar To Hit $121; Crude Oil To Hit $176?" →

Crypto: Failed Rally Builds Ambiguous Pattern

Posted on March 14, 2022 by Aibek Burabayev

Before starting the crypto update, I would like to check an assumption circulating in the media regarding a strong correlation of Bitcoin with the Nasdaq 100 index in the chart below.

It is safe to say that over the past two years, most of the time, Bitcoin was in a positive correlation with the Nasdaq 100 index. However, the current positive relationship is cooling down as we saw an almost absolute correlation at the beginning of February at 0.91, and these days it slipped down to 0.34.

Miscorrelation periods usually appear due to the higher volatility of Bitcoin and longer periods of price inertia in the stock index. In other words, these two instruments have different speeds. Continue reading "Crypto: Failed Rally Builds Ambiguous Pattern" →

Silver Update: $40 Then $81?

Posted on March 9, 2022March 8, 2022 by Aibek Burabayev

The title of this post is not clickbait; please keep reading until the end to see why silver can hit these levels.

The bullish pattern is shown in the dollar index chart in my December post with a question in the title "Is The Dollar Going To Steal The Santa Claus Rally?" played out as planned to destroy the rally of top metals.

Let us see the updated silver chart below.

The previous bullish setup for silver has been annihilated by the ongoing strength of the dollar. The price has dropped in another leg down to retest the former valley of $21.43. It has failed to update the minimum price as it stopped right there, and then the price bounced to the upside. Continue reading "Silver Update: $40 Then $81?" →

Author: Aibek Burabayev