Of late, I came across a lot of coverage on the BTCUSD ratio with Gold, and there are apparently much expectations that BTCUSD is going to explode, as previously.
So... I thought I ought to take a look at it myself and see what it can figure out.
The chart shows it... initially, it looked very much like the BTC/Gold is about to break out and give BTC a huge rally like before. But somethings didn’t look quite the same, so outcome may differ.
First up, the trend lines drawn appear that there is likely to be a breakout. I have little doubts about that. But the first thing sus about this is the MACD... it has a different profile from 2017 and 2019.
This brings me to the second point. Here we see the orange line, superimposed Gold price. In 2017, Gold prices were steady while BTC rocketed. In 2019, MACD was supportive even as Gold prices was rising, but BTC rose relatively more. In 2020, however, the imminent breakout appears to be due to a slight increase in BTC, but a major drop in Gold prices... which by the way, brings the denominator down, hence, ratio increases!
Good to know, good to watch, good to be ready nonetheless...
Bullish on BTCUSD in the very long term, but need to be very patient, and decisively act when necessary.
But for now, it’s sus...
So... I thought I ought to take a look at it myself and see what it can figure out.
The chart shows it... initially, it looked very much like the BTC/Gold is about to break out and give BTC a huge rally like before. But somethings didn’t look quite the same, so outcome may differ.
First up, the trend lines drawn appear that there is likely to be a breakout. I have little doubts about that. But the first thing sus about this is the MACD... it has a different profile from 2017 and 2019.
This brings me to the second point. Here we see the orange line, superimposed Gold price. In 2017, Gold prices were steady while BTC rocketed. In 2019, MACD was supportive even as Gold prices was rising, but BTC rose relatively more. In 2020, however, the imminent breakout appears to be due to a slight increase in BTC, but a major drop in Gold prices... which by the way, brings the denominator down, hence, ratio increases!
Good to know, good to watch, good to be ready nonetheless...
Bullish on BTCUSD in the very long term, but need to be very patient, and decisively act when necessary.
But for now, it’s sus...
