Chart the Market (22/08/2025)

Gold, H4: 

Gold has engineered a technically significant move by breaking above its primary downtrend channel, an initial signal of a potential trend reversal. However, the subsequent price action has lacked bullish conviction, with the metal struggling to maintain momentum and trading in a sideways-to-lower pattern since the breakout. This failure to rally decisively following the channel breach introduces ambiguity into the near-term outlook.

For the breakout to be validated and for bullish reversal signals to gain credibility, a sustained move above the key resistance level of $2,330 is critical. A definitive break and close above this threshold would suggest the reversal is gaining traction and could open the path toward higher resistance zones.

Momentum indicators currently reflect this market indecision. The Relative Strength Index (RSI) is hovering near its midline, indicating a balance between buying and selling pressure, while the Moving Average Convergence Divergence (MACD) is nearing a potential crossover above its zero line but has yet to confirm the move with strong momentum. Together, these indicators provide a neutral signal, awaiting a catalyst from price action itself.

Resistance Levels: 3345.00, 3431.00

Support Levels: 3262.70, 3193.75

BTC,  H4

Bitcoin has engineered a notable technical development, breaking decisively above its primary downtrend channel and surpassing a key immediate resistance level. This price action suggests a potential bullish trend reversal may be underway, marking a significant shift from its recent pattern of lower highs and lower lows.

The breakout’s sustainability is now the critical focus. For the reversal signal to gain validity, Bitcoin must find consistent traction and maintain support above the $113,000 level. A successful defense of this former resistance-turned-support would significantly strengthen the technical case for a renewed upward move.

However, a clear divergence is emerging between the bullish price action and lagging momentum indicators, injecting a note of caution. The Relative Strength Index (RSI), while recovering, continues to hover near oversold territory, indicating underlying selling pressure has not been fully exhausted. More notably, the Moving Average Convergence Divergence (MACD) continues to edge lower beneath its zero line, signaling that bearish momentum, while potentially decelerating, has not yet confirmed the shift to a bullish trend.

Resistance Levels: 115,141.00, 117,200.00

Support Levels: 110,400.00, 107,430.00