2023 Market Forecast by SolidECN

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Silver Rebounds Amid Global Metal Recovery​

Solid ECN—Silver prices rose above $27 per ounce, recovering from a drop that had pushed the price to a three-month low of $26.8 on August 6th. This increase was supported by a broader recovery in precious metals as market volatility eased, reducing the need to sell bullion to meet margin calls.

The softer stance expected from the Federal Reserve also helped boost silver prices. The central bank is anticipated to cut rates by 100 basis points this year.

Additionally, the PBoC and the BoE implemented looser monetary policies. However, concerns about weak global manufacturing activity limited silver's appeal as an industrial metal. The ISM PMI declined more than expected, highlighting sluggish factory activity in the US, while China's official and Caixin PMI figures also fell short of expectations.​

 

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Gold is Overpriced in Short-term​

Solid ECN—The gold price is overbought, testing the August 2 high at $2,477. The primary trend remains bullish, as the price is above the 50 and 100-period simple moving averages.

However, we expect the price to dip and test the July 17 low at $2,451 before the uptrend resumes. Moreover, if the price breaks below $2,451, the consolidation phase will likely resume near the July 24 high at $2,431.​

 

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Bitcoin Bat Pattern: Key Price Levels Explained​

Solid ECN—Bitcoin’s 1-hour chart formed a bat pattern, testing the ascending trendline at approximately $58,700. The bullish outlook should be invalidated if the price dips below the ascending trendline. In this scenario, the decline will likely extend to $56,657.

Conversely, the $61,896 could be targeted if the bulls (buyers) close and stabilize the price above the descending trendline and the $60,467 immediate resistance.​

 

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Ethereum's Butterfly Pattern: Key Support Levels​

Solid ECN—Ethereum formed a butterfly pattern in the daily chart. As of writing, the ETH/USD pair is testing the 100-period simple moving average, while the stochastic oscillator is approaching the overbought territory on the 4-hour chart.

From a technical perspective, if the price remains above the ascending trendline and the 50-period SMA, Ethereum's outlook will likely involve testing the July 25 low at $3,083.

On the other hand, a dip below the August 12 low at $2,506 would cancel the bullish outlook. In this scenario, the next supply zone would be $2,303, followed by $2,111.​

 

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Litecoin Bullish Channel & SMA Testing Insights​

Solid ECN—Litecoin trades in the bullish channel, testing the 100-period SMA in today's trading session. Meanwhile, the stochastic oscillator signals an overbought market; however, the candlestick patterns do not give a sell signal.

The technical outlook for the LTCUSD pair will remain bullish. However, for the bull market to resume, the price must close above the 100 SMA. If this scenario unfolds, the next target will be the July 25 low at $66.7.

Moreover, the $58 level plays as the primary support for the bullish scenario. If this level is breached, the bullish outlook will be invalidated.​