- October 30, 2020
- Posted by: Tradingshot Articles
- Category: Cryptocurrency
I have used the Gold-to-BTC ratio many times in my publications, one of the most informative of those seen below:
I looked into it again as lately I am seeing an interesting price action between the two. While Gold struggles to regain its bullish momentum of the early part of the year, Bitcoin touched the June 2019 High and is surprisingly holding its gains despite the sharp pull-back on the global stock markets.
The ratio currently shows that the Higher Lows trend-line that started on the December 2017 Bottom, just broke to the downside. Last time that happened in the previous Cycle, was in May 2016. That break-out initiated a strong selling sequence for the ratio.
What is even more interesting is that on May 2016 (the month of the Higher Lows break-out for the ratio), Bitcoin broke its first Higher High level of the (new) Bull Cycle, starting officially the Parabolic Rise. Currently (October 2020), Bitcoin is testing the first Higher High level of this (new) Bull Cycle, the 13865 June 2019 High. Breaking above it will fill all the dynamics and complete the full-sequence of the 2016 break-out.
So is this a sign that Gold investors are moving their capital to the digital Gold, BTC? And does this indicate that the parabolic phase of Bitcoin is about to start?
Feel free to share your work and let me know in the comments section!
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