Experienced trader Peter BrandtBitcoin/Gold ratio may have bottomed out, indicating that this could be a sign of a change in the current downtrend of the largest cryptocurrency. $60,045 highlighted a potential trading opportunity for.
BTC May Attack Using Strength from Bitcoin/Gold Ratio Formation
Brandt said in a recent tweet: BitcoinHe shared his analysis of the Bitcoin/Gold ratio, a key metric that compares the price of the currency to the traditional safe-haven asset gold. The chart accompanying Brandt’s tweet features a parallel channel formation, showing that Bitcoin is in a downtrend relative to gold.
Parallel channel formationis a technical analysis tool that summarizes price movements between two trend lines—resistance (upper line) and support (lower line). Brandt’s chart is a pattern often used to predict trend changes. Bitcoin/Gold ratioIt is showing a descending parallel channel formation. This suggests that as the rate is falling, it may soon approach a support level where a trend reversal could occur, presenting a potential buying opportunity for investors.
In addition to this analysis, CryptoQuant reported that Bitcoin has recently decoupled from gold. Gold price While the stock market has surged to record highs, Bitcoin has plunged, indicating that the two assets are currently negatively correlated. This negative correlation typically indicates a risk-averse environment, with investors opting for traditional safe-haven assets like gold over more speculative investments like Bitcoin.
Despite this trend, Bitcoin showed resilience over the weekend, rising 3.17% in the last 24 hours to $60,000, its highest level since early September. This rise was driven by growing optimism among investors that the Fed could make a significant rate cut at its meeting on September 18, which could boost confidence in the cryptocurrency market.
Analysts Are Positive About Bitcoin
On the other hand, experienced cryptocurrency analyst Michael van de Poppeechoed Brandt’s optimism in his latest tweet, saying, “Bitcoin followed the plan and is at the next resistance area. Getting back to $60k is a good sign for the markets and as long as the markets stay above $56-57k I think we are in good territory for an attack on ATH in October.”
Supporting this positive outlook Rekt CapitalBitcoin reported a 1 percent return for September, moving into the green zone after recovering from a nearly -11 percent drop at the beginning of the month.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
