Bitcoin and gold should test support line first before their next jump

The trade war between China and the US seems to be cooling down (momentarily), Trump desperately needs a peace deal between Russia and Ukraine (as his own popularity is plummeting), and all other world leaders are praying for calm. Gold and Bitcoin are therefore likely to test their newest (and higher) support lines in the coming days before taking an ultimate leap higher.

Pope

Analysts expect the pause button to be pressed this week, the last week already of April. The death and funeral of Pope Francis provided a moment of calm. That is only fitting after a month in which the stock markets tumbled due to Trump’s disastrous ‘liberation day’ announcement, as well as a month in which both Bitcoin and gold performed very well.

The precious metal confirmed its status as the ultimate ‘safe haven’ in times of political uncertainty (and touched record after record) just as Bitcoin tested its strong support line around $75,000 at the beginning of the month and then climbed some $20,000 higher to a level of around $95,000.

For the largest digital currency, it will now be important to see where the new, normally higher, support line lies.

In addition to this analysis, gold experts think that a ‘blow-off top’ for the price of bullion should have already occurred. If that indeed happens, Bitcoin could also experience a small setback.

Dollar

Lastly, we need to keep an eye on the dollar, which lost a lot of ground against the other major fiat currencies in April. If the US dollar stabilizes, Bitcoin could take a step back. A further fall of the dollar could give a boost to Bitcoin (but would be bad news for the global economy, which will have to adjust to a weaker dollar – the fiat currency par excellence in which the price of many commodities is expressed).