ICOCalendar.Today

  • ICO Directory đź“–
  • ICT Token 🔥
  • Blockchain News đź—ž
    • Ethereum
    • Binance
    • Cryptocurrency
    • Litecoin
    • Monero
    • Ethereum Classic
    • Bitcoin
    • Tezos
    • Tron
    • Cardano
    • EOS
    • Algorand
    • ZCash
    • Dash
    • Chainlink
    • NEO
    • Maker
    • DeFi
  • List a project đź’Ł
  • Submit Press Release 👍
  • ICO Directory đź“–
  • ICT Token 🔥
  • Blockchain News đź—ž
    • Ethereum
    • Binance
    • Cryptocurrency
    • Litecoin
    • Monero
    • Ethereum Classic
    • Bitcoin
    • Tezos
    • Tron
    • Cardano
    • EOS
    • Algorand
    • ZCash
    • Dash
    • Chainlink
    • NEO
    • Maker
    • DeFi
  • List a project đź’Ł
  • Submit Press Release 👍

Bitcoin is Eerily Copying Gold Trends; Analyst Fears Breakdown

9/23/2020

Comments

 

Bitcoin is laggingly tailing the gold chart trends, and it may face trouble for its delayed correlation.

That is due to the precious metal’s latest breakdown move, wherein the price broke out of a Symmetrical Triangle pattern to the downside. Incidentally, Bitcoin is now consolidating inside a similar technical structure, and one analyst predicts it would break bearish just like gold.

“Since the COVID Crash of March 2020, it is apparent that gold has been leading Bitcoin,” the TradingView.com contributor wrote in his analysis, placing their performance against each other to prove the correlation theory.

Bitcoin, Gold, XAUUSD, BTCUSD, BTCUSDT, XBTUSD, cryptocurrency

Bitcoin-Gold trend comparison since March 2020, presented by Trader_Johnni. Source: TradingView.com

As shown in the chart above, the Gold bull run in March 2020 started before Bitcoin. The precious metal’s consolidation move in April 2020, too, paved the way for Bitcoin’s sideways trend that began in May 2020. Even the gold’s record high appeared more than a week before Bitcoin’s yearly one.

That left the analyst with ample evidence about a potential breakdown in the cryptocurrency market. The reason is simple: Gold has done the same after breaking bearish on its Symmetrical Triangle.

Studying Symmetrical Triangles

A Symmetrical Triangle is a continuation pattern, confirmed by two converging trendlines forming at least two lower highs and higher lows. It means that the price would likely undergo a breakout in the direction of its previous trend – though that is not always the case.

Both Bitcoin and gold formed a Symmetrical Triangle after rallying exponentially from their mid-March nadirs.

That would have ideally resulted in a bullish continuation trend. But the breakdown move on the gold charts invalidated the upside expectations. Therefore, the metal and the cryptocurrency are now targeting lower levels for a potential pullback.

Technically, the breakout target of a Symmetrical Triangle is as much as its maximum height.

bitcoin, btcusd, btcusdt, xbtusd, cryptocurrency, Euro, EURUSD, cryptocurrency, dollar, dxy, s&p 500, dow jones, nasdaq, gold

Bitcoin setup per the Symmetrical Triangle pattern. Source: TradingView.com

With gold breaking down, it now has a likelihood of trimming another $300 off its exchange rate – at most. Meanwhile, Bitcoin could fall by around $2,500 more, bringing its downside target somewhere near $7,800.

And the fundamentals agree.

Stronger Dollar, Delayed Stimulus, Weaker Bitcoin

The US dollar has lately put downward pressure on safe-haven and risky markets both. Its rebound from the two-year low reduced bids for Bitcoin, gold, and stocks, causing them all to correct lower in tandem.

us dollar, bitcoin, btcusdt, btcusd, dxy, xbtusd, cryptocurrency

US Dollar Index (DXY) is up 1.25 percent on a week-to-date timeframe. Source: TradingView.com

A delay in the dispatching of the second COVID stimulus by the US Congress led investors spend-less-save-more strategy. Prospects of lesser-than-expected dollar liquidity increased its demand in the short-term, hurting other assets simultaneously.

Analysts think there won’t be a stimulus package until the US presidential elections in November. That would ensure Bitcoin and gold trades in sync in the coming sessions, with a downside bias.



Originally from Bitcoinist.com https://ift.tt/360nwXl
Comments

    Blockchain News

    Leading global blockchain news provider. A blockchain, originally block chain, is a growing list of records, called blocks, that are linked using cryptography.
    BLOCKCHAIN NEWS

    Archives

    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    November 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017

    RSS Feed

​About

  • About us​
  • ICT Token
  • News​​
  • Testimonies
  • Terms of Service​​
  • ​​We on Google News​ 🤑
  • ​We in the media
  • ​Partners

Let's connect!

News Feeds

  • Blockchain News
  • Jobs Board 👨‍🎓
  • Bitcoin News
  • Ethereum News
  • Binance News
  • ​Tron News
  • Cardano News
  • EOS News
  • Tezos News
  • Stock Markets
  • COVID-19 News
  • Crypto News
  • Chainlink News
  • Litecoin News
  • Dash News
  • Monero News
  • ETC News
  • NEO News
  • Maker News
  • DeFi News
  • ZCash News
  • Algorand News
© 2017-2020 ICOCalendar.Today. All Rights Reserved.