TradingShot

BITCOIN Can it repeat GOLD's pull back after it breaks the ATH?

Long
BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Bitcoin is often compared to Gold in terms of "store of value". It has been given the name "Digital Gold". Not only because of this fundamental aspect but also technically it tends to follow Gold's long-term cycles on a logarithmic scale. This is what the current study is about.

Before you rush into the comments section without reading the full analysis, I know Bitcoin's (left) chart is on the 1W time-frame, while Gold's (right) is on the 1M time-frame. How could it not be. Bitcoin represents the fast-moving digital era and has been around for only (roughly) 10 years while Gold is the standard, traditional store of value and has been around for centuries. So now that we got this out of the way we can move forward.

Gold's current parabolic rise broke its All Time High last July and made a peak one month after on the 1.1382 Fibonacci extension . It has since been pulling back (largely assisted by the stimulus no-deal, vaccine news), a pull-back that got accelerated this week.

BTC is just a fraction away from its ATH. The 1.1382 Fibonacci extension is around $25000. We can't know if that exact level will be reached, I have made a good case in previous studies for a peak around 22k. Check out also the RSI sequences between the two, which look even more identical.

If Bitcoin follows Gold so closely on the long-term, does this mean that after breaking the ATH we should expect a medium-term pull-back for BTC on the 1W chart? Feel free to share your work and let me know in the comments section!

Be sure to expect more ATH studies on BTCUSD this week. We are witnessing historic times and I will be making a lot of cross-studies and comparisons!

Please like, subscribe and share your ideas and charts with the community!

--------------------------------------------------------------------------------------------------------

!! Donations via TradingView coins also help me a great deal at posting more free trading content and signals here !!

🎉 👍 Shout-out to TradingShot's 💰 top TradingView Coin donor 💰 this week ==> johnmcal3

--------------------------------------------------------------------------------------------------------

Join Tradingshot's Account Management program!
🚀👑
*High monthly profit on +10000 USD accounts
*Contact info@tradingshot.com for more

💲 I trade on PRIME XBT. Best broker for intraday trading!

💰 REGISTER HERE --> https://primexbt.com?signup=139341
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.