Bitcoin has slipped below $75,000, trading around $74,500, while tech stocks show a bounce. The Nasdaq 100 is up over 3%, but Bitcoin's lack of bullishness signals weakness. The cryptocurrency lost key support levels, including the $80,000 to $82,000 zone, and failed to reclaim it after the midterms.
A red dot on the 2-week momentum wave of Market Cipher B indicates downside momentum. This signal carries significant weight, potentially playing out over weeks or months. Meanwhile, gold and silver are rallying, with gold around $4,100 an ounce and silver near $53, both showing strong bounces from recent lows.
The author is long on gold and silver, both in physical form and on platforms like Phemex and Breakout Prop. They are holding these positions while sticking to a dollar-cost averaging strategy for Bitcoin, avoiding short-term trades due to the current downside momentum.
The stronger-than-expected jobs report on Friday has increased the likelihood of a Fed rate hike in December. Higher rates for longer are challenging for risk assets like crypto, while gold is seen as a store of value during economic uncertainty. The October CPI inflation report, due out tomorrow, could further influence market sentiment.