Crypto analyst who is widely respected believes that Bitcoin (BTC), the cryptocurrency, will soon break out of its current price against gold.
Michael van de Poppe, a crypto trader, told his 816.800 followers that on X, the BTCUSD/gold rate, or the relative value of Bitcoin to gold’s price, was showing bullish divergence.
The price of an asset will record lower lows when indicators such as Relative Strength Index, a momentum oscillator, show higher lows.
The daily BTCUSD/gold timeframe shows a massive bullish divergence. The gold price drops, Bitcoin is consolidating and the situation starts to improve. This divergence is also a bullish one, which means that Bitcoin will likely outperform the gold price in the future.
Periods of similar bullish divergence in the past:
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Q3 2024, just before Bitcoin reaches the $100,000 threshold.
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Q4 2022. (The end of Bitcoin’s bear market).
“The big rotation is coming.”
Analysts also say that the gold price’s drop on Monday could indicate that investors are soon going to start converting their gold profit into Bitcoin.
It’s been a very interesting Monday on the market, with gold having corrected significantly. The talk in the room will not be an extended correction but the fact that gold has dropped below the previous ATH is not good. The price is actually marking several bearish divergences across timeframes, and the silver, palladium and platinum sentiments were all wiped out in one single daily candle.
It’s at this stage that many people believe there is another leg to come, and blame Bitcoin when it doesn’t go up. This is the point where it starts rotating .”
Bitcoin was trading at $87.975 as of the time this article is written, a marginal increase on the previous day. The BTCUSD/gold rate is trading at around 20 ounces per Bitcoin.
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The post entitled Big Rotation into Bitcoin Coming As BTC/Gold Ratio Flashes a Bullish Reversal Sign: Michael van de Poppe could be updated as new information becomes available.
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