Bitcoin Banana Bubble - Paper Umbrella Top, Gold, What Jobs? GSPR
Bitcoin Bananas Top
For the past month I have been commenting that $100k was the magnet and when Bitcoin hit $99,700 I said that was close enough. We got a stronger confirmation of the $100k magnet on Thursday. Bitcoin popped and collapsed on strong volume with a high of about $103,600 and coming back down late afternoon to about where it started from around $98,500
This action formed a candle stick called a paper umbrella which is a topping indication. Many investors today don't analyze candle stick charts properly because there must be an open and close price for candle sticks to have the proper meaning. Things that trade 24 hours like Gold and Bitcoin make daily candle sticks useless. The best compromise is look at the candle stick formed during hours that most trading occurs. This is around 8am to 5 or 6pm. That said, with Bitcoin often there is heavy trading in Asia outside these hours. That is probably what spiked Bitcoin up late Wednesday.
Another bearish factor is that Bitcoin could not hold onto the gains above $100k and immediately collapsed back down. This smells a lot like a top to me and also consider Crypto has gone bananas. The next major move with Bitcoin will be down.
You know for certain that Crypto is in a bubble when a Cryptocurrency investor named Justin Sun paid $6.2 million for a banana duct taped to a wall and than ate the banana in front of reporters. If that is not a bold flaunt of excess bubble mania, nothing is. It was labelled as art.
Gold continues to consolidate it's recent run up this year. There is still not a lot of positive conviction among western investors as the rally continues to be mostly driven by Central Bank buying. Global gold ETFs saw their first monthly outflow since April, losing US$2.1bn in November – Europe (-US$1.9bn) led outflows while North America (+US$79mn) was the only region reporting inflows.
Central banks reported 60t of net purchases this month – the highest amount recorded y-t-d. The Reserve Bank of India (RBI) led the field, adding 27t of gold to its reserves, followed by Turkey and Poland – 17t and 8t respectively. BRIC's CBs will continue to buy as well as Europe that is more affected by the Ukraine war and most European countries in recession. The government in German has collapsed and now France that had a vote of non-confidence this week. What a mess in Europe.
Job numbers were expected to return to a more normal level in November, economists predict, after hurricanes and the strike at Boeing (BA) were blamed for October's numbers. The U.S. economy is projected to add 200K jobs last month, according to consensus estimates. It is expect the BLS will revise October's pathetic 12k number as well.
The jobs number came in better than expected at 227k for November and October was revised up to 36k. Looks like the Goldilocks number to me. However if you average the two months it is 131.5k so numbers are softening. To keep numbers up the BLS said the birth/death rate model created a whopping 368k jobs in October which is way higher than to October and November total job numbers combined. So far 1.253 million jobs have been added with the birth/death rate model for 2024.
GSP Resource - - TSXV:GSPR OTC: GSRCF - - - Recent Price - $0.09
Entry Price - $0.15 - - - - Opinion - buy
GSPR announced the completion of its initial mineral resource estimate for the Alwin Copper-Silver-Gold Project in B.C., Canada. This provides the first comprehensive analysis of the Alwin Project’s potential as an open pit resource which previous had only been considered as an underground mine.
This is an inferred mineral resource of 34.6 million pounds of Cu at an average grade of 1.08 % Cu within 1.46 Mt. The resource is small but just a starting point with lots of expansion potential.
There are underexplored surface zones within the pit, along strike, and at depth below the pit and potential for significant gold-silver contribution with additional drilling as highlighted by historic and GSPR's recent gold-silver intercepts. There are several underexplored porphyry style copper targets hosted both on GSP’s Alwin claims, as well as their Mer Claims, approximately 2 km NW of the Alwin Project.
This graphic will give you an idea of the open pit concept verses underground. The resource Pit Shell (beige) and Copper Block Model (gradational colour bar), historic underground development (blue), and backfilled stopes (red).
The key thing is this open pit is just a new concept and there is lots of potential to expand it. Also 1.08% is a very good grade for an open pit and this does not include and gold and silver credits that are certainly there. Past historic production of copper included gold and silver. Production took place between 1916 to 1981 totalling 233,100 tonnes that milled 3,786 tonnes of copper, 2,729 kilograms of silver and 46.2 kilograms of gold. The average diluted head grade was 1.5% copper.
Their drill program started end of October so we will soon learn of some of that exploration potential. The stock remains range bound and a close above $0.13 is key, perhaps on the coming drill results.
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