Bitcoin – U.S Dollar and Gold Correlations

I harken back to the “good old days” trading forex when…..I’d get up at the crack of dawn ( now’a days even earlier ) pull up my charts and trade journal, review the dailies/weeklies, check the “news calendar” and get set for another day out on the playing field.

Glorious times. Truly glorious times. Times I will always associate with incredible freedom, excitement, and the ever satisfying / rewarding experience of being able to share my thoughts and experiences with you the readers as……….pulling apart and exposing the underbelly of financial markets (for those who perhaps needed a little “extra help”) was not only extremely gratifying – but somewhat of a passion.

Coming full circle, as things more often than not do……..I’m here yet  again, and oddly…..faced with similar circumstances / similar variables in an ever-changing financial eco system.

Oh yes……you know it. I’m talking about ( not only Bitcoin ) but “once again” – I’m talking about the good ol American Dollar.

The U.S Dollar is now headed “DECIDEDLY LOWER”.

And……if any of you have learned “anything” here over the years – What happens to assets “priced in U.S.D” when the dollar falls?? Yes! You’ve got it….assets such as gold and Bitcoin will rise as you need MORE DOLLARS to by them!

This is a monthly chart of USD:

USD To Fall Big Time

USD To Fall Big Time

You see the dark black line? Give or take a day / week ……give or take a few points higher ( who gives a shit ) this marks the serious “top of tops” in USD and a massive turning point in markets.

Guess which markets? Ya……Gold and commods sure…but perhaps more interestingly (and now in context) you may finally understand my recent “forray” into Crypto.

“As The U.S Dollar Falls – Both Gold And Bitcoin Will Rise in Tandem.”

It’s Forex 2.0 folks – just a tad more “futuristic”.

Quick charts on Bitcoin and likely Gold bottoms:

Bitcoin Bottom Around 6400.00

Bitcoin Bottom Around 6400.00

See the dark black line = bottom area.

Now Gold:

Gold Bottom Around 1200.00

Gold Bottom Around 1200.00

 

This isn’t a trade people…..this is a fundamental. Put it in your pocket as you continue to “question” the validity of crypto while “right in front of your faces” you’ll be watching the further depreciation of your “fiat / paper bullshit” along with it your purchasing power and more importantly – your freedom.

 

 

 

8 Responses

  1. Scott September 9, 2018 / 4:52 pm

    Are you buying EURUSD? Or buying/selling some other currency combo with the USD?

    • Forex Kong September 10, 2018 / 7:40 am

      Buying EUR/USD Forex wise is the best way to take advantage of USD weakness.

      Me? I’m sticking with Bitcoin / adding again here once 6400.00 breaks higher.

  2. D Braun September 9, 2018 / 6:02 pm

    Haven’t you been calling the dollar’s decline for some time now?

    • Forex Kong September 10, 2018 / 7:43 am

      Absolutely!

      How bout pulling up a “monthly chart” and having a good look at THE ENTIRE YEAR OF 2017.

      The trade was epic, and I’ve not made a “bullish dollar claim since”.

      It’s all about “when to get off the merry go round” and in turn decide to take another ride.

      My fundamentals are SHORT USD – and now is the time they re align.

  3. Peter September 11, 2018 / 6:46 am

    whats ur.target.for.usd short? i aiming 91..

    • Forex Kong September 12, 2018 / 8:08 am

      My sights are set even lower Peter, but this over a consider period of time.

      Nailing it here might very well allow one to “set it and forget it” as far as a SHORT USD trade goes.

  4. Justin September 12, 2018 / 6:28 am

    Gold’s drop is far from over, Kong

    Next stop $1050 – $1080.

    • Forex Kong September 12, 2018 / 8:16 am

      Thank you Justin.

      An additional $120 DOLLAR drop in an asset priced at 1200.00 is certainly of no concern to me ( nor should it be for anyone ).

      The goal is to catch “what you can” of any macro turn, and not get all tied up in the “exact numbers”.

      I draw my lines of support and resistance with my crayola crayons – not my laser beams.

Leave a Reply to D Braun Cancel reply