I designed this custom chart to monitor the relative strength of top precious metals gold and silver versus top cryptos bitcoin and ethereum, to their respective ratios.
As you can see, there is a compression triangle of sorts that has formed and looking to determine which way it will break out.
The bottom is supported also by this arc spanning a much larger time horizon.
The fundamentals favor PMs.
All this together leads me to believe we are headed UP in gold/silver relative to cryptos.
None of this is financial advice.
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@rmohamed, it was reflective of the local average at the time of the ratio of gold to silver in dollars, that is 1 ounce of gold could buy approximately 68 ounces of silver. In the formula I was giving them equal weight, same with the eth to btc ratio
p4917
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Interesting chart! While looking at it, it appears that you could also put a downward trendline there, starting in Jan 2021. Then the ratio could be in a descending channel, which means that cryptos rise and PMs fall ... ;)
greenvention
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@p4917, Yes, that could happen, and it is breaking below the arc right now. But when I put the downward channel in, it doesn't look like it belongs there when I zoom out the chart, or if it does, it's much more likely to break out the upside. Time will tell of course