I stumbled on this incredible trendline that is giving support to both the Bitcoin market and the Gold market.
It seems like Bitcoin has been mimicking its bigger brother in order to find support.
Note that there are 5 tests of this trendline and that they occured in both markets!
Test 1: First low signalling the end of the first bear move in the longer bear market.
Test 2: After falling through the trendline failure of breaking the trendline after which a deeper fall follows marking the final low in the bear market.
Test 3: After having resumed a bull market the trendline acts as resistance prior to making a new all time high.
Test 4: After setting a new all time high the trendline acts as a support for the bottom of the bear market.
Test 5: Second test marking the first new higher low.
Conclusion:
This is a very significant trendline that now acts as a support for both the bitcoin and the gold market.
Bitcoin has up until now been able to mimick the flow of the gold market but now both markets seem to be at the same stage whilst bitcoin is the one where these trends take place faster.
Instead of being able to follow and mimick, bitcoin will have to lead.
It is significantly more unlikely that gold will not mimick its younger brother the way it was the other way around.
Another important point to distinguish both graphs is that for gold, the trendline has been rising with 3.85% per year. For bitcoin, the trendline rises with 60.5% per year.
It seems like Bitcoin has been mimicking its bigger brother in order to find support.
Note that there are 5 tests of this trendline and that they occured in both markets!
Test 1: First low signalling the end of the first bear move in the longer bear market.
Test 2: After falling through the trendline failure of breaking the trendline after which a deeper fall follows marking the final low in the bear market.
Test 3: After having resumed a bull market the trendline acts as resistance prior to making a new all time high.
Test 4: After setting a new all time high the trendline acts as a support for the bottom of the bear market.
Test 5: Second test marking the first new higher low.
Conclusion:
This is a very significant trendline that now acts as a support for both the bitcoin and the gold market.
Bitcoin has up until now been able to mimick the flow of the gold market but now both markets seem to be at the same stage whilst bitcoin is the one where these trends take place faster.
Instead of being able to follow and mimick, bitcoin will have to lead.
It is significantly more unlikely that gold will not mimick its younger brother the way it was the other way around.
Another important point to distinguish both graphs is that for gold, the trendline has been rising with 3.85% per year. For bitcoin, the trendline rises with 60.5% per year.
