A widely followed crypto analyst believes Bitcoin (BTC) is on the verge of breaking out against gold.
Crypto trader Michaël van de Poppe tells his 816,800 followers on X that the BTCUSD/gold ratio, which is the value of Bitcoin relative to the price of gold, is showing bullish divergence on the daily chart.
[adinserter block="1"]Bullish divergence, which suggests price will start to increase, occurs when the price of assets records lower lows while indicators, such as the Relative Strength Index (RSI), a momentum oscillator indicator, are witnessing higher lows.
“Massive bullish divergence on the daily timeframe for BTCUSD versus gold. Gold comes down, Bitcoin consolidates and this starts to look better. On top of that, given that this is a valid bullish divergence, it implies that Bitcoin is likely to outperform gold in the coming period.
Similar periods of such a bullish divergence:
- Q3 2024 (just before Bitcoin broke out towards the $100,000 barrier).
- Q4 2022 (the end of the bear market for Bitcoin).
The big rotation is on the horizon.”
The analyst also says that gold’s price dip on Monday may indicate investors will soon start rotating their gold profits into Bitcoin.
“It’s been an interesting [Monday] on the markets, as gold has corrected substantially. Although the talk of the room won’t be about an extended correction, the fact that it dropped beneath the previous ATH (all-time high) isn’t great. It’s actually marking multiple bearish divergences on timeframes and it took out the sentiment on silver, platinum and palladium in a single daily candle.
This is probably the stage where a lot of people will believe that there’s another leg up on the horizon, while the same group will blame Bitcoin for not going up. That’s the stage where it rotates.”
Bitcoin is trading for $87,975 at time of writing, up marginally on the day. Meanwhile, the BTCUSD/gold ratio is currently trading for around 20 ounces of gold per one Bitcoin.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Everyonephoto Studio
