Last time I looked into this very informative ratio was in late October 2020, right before Bitcoin started its new Parabolic Rise:
The Triangle broke to the downside and that heavily favored BTC against Gold in a diverging trade trade that few saw.
Since April though, we saw BTC giving away power to Gold with the ratio starting to rise again as BTC hit the...
One more move down... and one more very last move down... and one more...
But then, at some point, there's just BOOM!!... and the upward slingshot movement starts!
Or am I looking at this the wrong way?
(Note: we are looking at the Weekly chart)
... the Gold/Bitcoin ratio.
Far oversold on all scales. This means that compared to Bitcoin, Gold either becomes completely useless or is just very cheap. What do you think it is?
It is worthwhile to follow the development for example on 1h. Right now it seems to be reversing. Stay tuned, it is going to be exciting.
To explain it simply, if the blue curve keeps...
Gold against bitcoin was lower only in 2018.
From this point I expect another 30% up in Bitcoin price till 24000 after which there will be a crush like 2018
2 Month timeframe is useful here:
- Stoch RSI about to cross below 80, like exactly 5 yrs ago.
That was it for the ratio!
- Notice the gravestone doji and the pressure from 21 ma
One more time:
This is it for the ratio!
Bitcoin will purchase a lot more gold in one year!
After the Doji reversal on the 2m, the ratio failed to break the 18 mma.
This means history will most probably rhyme.
Downtrend confirmed imo! Stay tuned for timeframes and targets ;-)
I've never used a ma trend line cross before. I don't know if it even has a name??
But somehow this one seems relevant.
Last time (nov 16) this cross happened while ratio was already favoring bitcoin and pushed the ratio way down.
This time the cross happens while ratio is favoring gold in short term.
And with gold near ath...
