• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Bet & win BTC
Breaking News: Ecommerce Giant Amazon To Launch NFT Initiative
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Bet & win BTC
Bitcoinist.com
No Result
View All Result
Breaking News: Ecommerce Giant Amazon To Launch NFT Initiative
Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Advertisement

Bitcoin’s Lagging Correlation with Gold Could Push Price to $25K: Analyst

Yashu Gola by Yashu Gola
2 years ago
in Bitcoin
0
Advertisement

Bitcoin tails the gold market but with a delay. And the lagging correlation now suggests that the cryptocurrency would rise to $25,000.

Analysts at independent analyst firm TradingShot highlighted the bullish fractal in their note Tuesday. They noted that Gold established its all-time high in July 2020 amid fundamentals that also supported the Bitcoin price rally. The precious metal peaked near its 1.382 Fibonacci extension level (monthly), only to pull back later.

Get 30 FREE SPINS at Punt Casino - NO DEPOSIT REQUIRED! Start Playing Now.

TradingShot analysts stated that Bitcoin is on the cusp of doing the same. First, the cryptocurrency would aim to peak out near its own 1.382 level (weekly). And later, it would correct lower just like gold has done throughout the last two weeks. The Bitcoin’s 1.382 Fib level is at $25,000 — an all-time high if secured.

gold, Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Bitcoin-Gold correlation since September 2018. Source: BTCUSD on TradingView

Even the Relative Strength Indicators of both gold and Bitcoin appear identical. Pitting them against one another shows that the Bitcoin weekly RSI is copying the monthly Gold RSI moves with a lag of as much as five months. That further attests to the theory of projecting the Bitcoin price at $25,000 in the coming weekly sessions.

“Bitcoin is often compared to Gold in terms of “store of value.” It has been given the name “Digital Gold.” This fundamental aspect and, technically, it tends to follow Gold’s long-term cycles on a logarithmic scale,” — the analyst asserted.

Bullish Overtones

Gold is undergoing a short-term correction because of three prime reasons.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

First, the precious metal went into its overbought territory that amounted to some form of downside moves. Second, investors’ appetite for safe-haven assets reduced after Moderna, Pfizer, and AstraZeneca announced vaccines against COVID-19 with at least 90 percent efficacy.

And third, the long-delay in the second coronavirus relief bill increased demand for the US dollar. The greenback and gold have an inverse correlation.

Meanwhile, Bitcoin initially corrected lower after testing $12,500 as its ultimate resistance level. But a flurry of optimistic events, including PayPal’s foray into the crypto space, followed by its bullish outlooks by JPMorgan, Visa, and other major corporations, prompted the cryptocurrency to break out.

As of this Tuesday, the BTC/USD exchange rate was as high as $19,469.

20-30X Bitcoin Rally Ahead

Analysts agreed anticipated that the pair would move further north — above $20,000, before showing any signs of a downside correction. They also favored a long-term bullish outlook against the US Federal Reserve’s quantitative easing program that added about $16 trillion to the economy in 2020 alone.

When #Bitcoin was launched in early 2009, the US Dollar money supply (M2) was just at $8 trillion, roughly same size as #Gold. It then reached $16 trillion early this year.
Just this year alone 2020, we are seeing M2 increase by another $4 trillion. Topping $20 trillion soon!

— Bobby Lee – Ballet: World's EASIEST crypto wallet! (@bobbyclee) November 25, 2020

A similar setting favors gold at higher levels. Rob McEwen, chairman of McEwen Mining, sees the precious metal going to $5,000.

If the lagging correlation stands, it will turn Bitcoin’s pullback from an all-time high into an opportunity for investors to reload and eye higher price levels. Gold investor Dan Tapeiro thinks the cryptocurrency is going to $500,000 in the long-term.

“In the next five years, I can see gold at $4,000, so that’s double,” he said during a podcast interview. “But if gold is at $4,000, Bitcoin is probably somewhere between $300,000 and $500,000, so that’s a 20, 30x.”

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Yashu Gola

Yashu Gola

Globetrotter Yashu Gola has been working as a financial/crypto market journalist since 2013. He is an information technology graduate, a cryptography junkie, a filmmaking enthusiast, and an avid reader of Jon Erickson, Agatha Christie, JK Rowling, and Isaac Asimov.

Related Posts

50% of Bitcoin hashrate Controlled by Two Mining Pools

Data Shows 50% Of Bitcoin Hashrate Controlled By Two Mining Pools

2 hours ago
Institutional Bitcoin Buying Is a Positive Sign, Suggests Matrixport

Institutional Bitcoin Buying Is A Positive Sign, Suggests Matrixport

1 day ago
Bitcoin BTC

Inflation May Be In A Lull, What Does That Mean For Bitcoin?

2 days ago
Bitcoin Lightning Network POS Clover

Major Adoption News For Bitcoin: POS Giant Clover Starts Lightning Trial

2 days ago
Bitcoin

These Metrics Hint At Massive Bitcoin ‘Buying Opportunity’, Says Analyst

3 days ago
Bitcoin Whale

Bitcoin Exchange Whale Ratio Surges, What Does It Mean?

3 days ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Top Casinos

BitStarz
BitStarz
Punt Casino
Punt Casino
mBit
mBit
Metaspins
Metaspins
1xBit
1xBit
Coinplay
Coinplay
K8
K8
Vegas Casino
Vegas Casino

Sportbooks

Coinplay
Coinplay

Press Releases

  • Is Aptos (APT), Solana (SOL), or Snowfall Protocol (SNW)...

    7 hours ago
  • Hector Network launches its NFT marketplace on Fantom...

    7 hours ago
  • Fantom (FTM) launches ecosystem vault to finance dApp...

    7 hours ago
  • Esports Driving the Advancement of Cryptocurrency in Sports...

    22 hours ago
  • Connecting the dots on $PAW. Is Ryoshi back?

    1 day ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Bet & win BTC

© 2022 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.