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!

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Comments

Nice fractal comparison. I remember watching some of your work on BTC-Gold comparison. i'll see if i can get the search engine to dig them up to have a flavor of accuracy of pattern continuation.
To 22K , and beyond !
+5 Reply
TradingShot Vision2077
@Vision2077, Thanks Vision. Indeed I used to make a lot of BTC v Gold comparisons, especially the 3k bottom ones turned out very accurate.
Reply
Vision2077 TradingShot
@TradingShot, the search engine does not allow us to pull back enough "gold" charts from your past. Broken feature :/
+1 Reply
brsyers Vision2077
@Vision2077, lets get that ATH!
+1 Reply
Protixder Vision2077
@Vision2077, down trend looks active
Reply
Protixder Vision2077
+1 Reply
@Protixder, i guess 10k
Reply
How far do you expect gold to drop then? And how do you use DXY for this analysis?
+3 Reply
I deeply appreciate your work, your love for Bitcoin, and I can’t help but imagine all that it and cryptocurrencies represent, unless I’m projecting my own sentiment and confusing it, are glaringly obvious, not just in the accuracy of your forecasts, and the depth and breadth of understanding that is obviously required to maintain anything like your precision, but in what you focus on. You and only one other technical forecaster I know of on this platform have alluded to the historical relevance of these moments in Bitcoin’s history, and though you did not explicitly mention any details, it seems evident to me through following your previous coverage, that you fully appreciate the historic significance of this coin and what it represents in regards to the individual’s liberation from oppressive centralized powers by way of autonomy and privacy of personal finance, which we are experiencing and watching the broader world take notice and wrestle with, as we live and breathe... What a privilege. Can’t wait to see what your charts forecast for the times ahead.
Yours Truly
+2 Reply
foxymethoxy johnmcal3
@johnmcal3, the folks that know for sure don't usually tell :)

btc came out of the frustration of the subprime mortgage crisis, so it is its own ideal indeed
+1 Reply
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