The price of Gold (XAU/USD) has been in an impressive uptrend since last year when fears of a financial slowdown first started to surface. We have now seen Gold (XAU/USD) rise aggressively within a rising wedge and it has just faced rejection at the 78.6% fib retracement level. This now means that we could be looking at a major potential decline in the price of Gold, one that could see it break below the rising wedge and fall towards the 61.8% fib level if not much lower. We have previously seen that rallies in Gold (XAU/USD) have not necessarily led to rallies in Bitcoin (BTC) but downtrends in Gold have most of the time led to more pressure on BTC/USD and subsequent declines.

We are now at a point in markets where there is a lot of uncertainty around but Gold is not looking like such a lucrative buy. A lot of investors are confused as to what asset to hold on to as the fears of a recession loom over. One thing that is important to realize is that the Coronavirus situation is not getting any better. People need cash to buy necessities, even more so now than they would in just a simple recession. This time, they need to store a lot of food supplies and other essentials. This could lead to a rise in demand for the US Dollar in the near future. We have already seen the US Dollar Currency Index (DXY) recoup most of its losses and it is very probable to rally further from current levels in the weeks to come.

The 4H chart for BTC/USD shows that the cryptocurrency market is still in trouble. The longer the price trades sideways, the harder it will fall within the descending broadening wedge. This is why most bulls just want this correction over and done with at this point so Bitcoin could rally to the moon. For most traders in this market, the halving dream is still very much alive and they want to see BTC/USD shoot to a new all-time high capitalizing on the uncertainty.

We have clearly seen how Bitcoin (BTC) and other cryptocurrencies have performed very poorly these past few days when the stock market and oil market have seen major declines. However, a lot of retail traders keep coming up with reasons why they think it happened. Some think Plus Token had something to do with it or a whale dumping a large amount of Bitcoin (BTC). In other words, there are a lot of people in this market who will continue to be in disbelief for a long time until it is too obvious to everyone and then it would be too late to do anything about it.