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Thursday, February 9, 2023

Gold is ready to outperform Bitcoin

Gold is ready to outperform Bitcoin

The digital gold narrative, as gold is ready to outperform bitcoin with fears of hyperinflation as the economy deteriorates and more fiat money is printed, has propelled Bitcoin to new heights.

However, given the cryptocurrency’s history of terrifying drawdowns, things could change at any time.

The cryptocurrency’s trading pair against gold, which has hit a TD 9 sell setup on monthly timeframes, is one indication that Bitcoin may be in trouble soon.

If confirmed, the signal indicates that the current pattern has reached its limit and that a bounce is on the way.

Bitcoin continues to outperform gold in its own game

For the first time in its long history as a safe haven currency and store of value, gold’s prestige has been tarnished.

Bitcoin and Ethereum, according to brilliant pioneers including Mark Cuban and other top cryptocurrency experts, are demonetizing precious metals.

The digital gold narrative in 2020 is what triggered the end of the gold bull market and the start of the Bitcoin bull market.

Since then, the biggest cryptocurrency by market cap has grown to a $1 trillion market cap, eclipsing gold’s ten-fold market cap.

If the scarce cryptocurrency can absorb so much money, it will exchange for $500,000 or more per coin.

Although Bitcoin is quickly approaching trillions of dollars in value, there is a substantial divergence between the two properties, and a reversal signal has emerged.

Gold has fallen nearly 84% against Bitcoin in a few months. Could a bounce be coming?

How a reversal in metals could take revenge on crypto

The TD Sequential indicator has released a TD 9 sell setup on monthly timeframes, signaling that the steep downtrend of red candles could soon reverse.

Gold has fallen by 84 percent in comparison to Bitcoin price since October 2020, coinciding with the fall.

Could the overall drawdown in percentage terms be an ideal spot for this trading pair to turn around as well?

Bitcoin fell by 84 percent before hitting its bottom in late 2018 – could the total drawdown in percentage terms be an ideal spot for this trading pair to turn around as well?

Despite its precision, no one can tell with confidence, and neither can the TD Sequential indicator.

The signal sometimes fails, and when it does, the subsequent movement is much more strong.

However, when sentiment hits extremes, stocks appear to reverse, and sentiment in metals versus crypto is on the opposite end of the spectrum.

Gold, for example, was recently excluded from the Morning Brew market ticker list in favor of Bitcoin.

As previously mentioned, if and when Bitcoin turns around, it has been known to correct by as much as 84 percent in the past.

Will this be the case for crypto markets in the near future?

If you want to know about TOP 10 Stocks that will explode in 2021, read this article.

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