Synchronized moves with gold silver, Imply BTC has joined in flight from fiat

BTC lost its grip on any continuation of the rally that took prices from approximately $9,500 - $11,500. There seems to be strong resistance at $12,300 that is putting a stop to any further upside movement. At the same time the low today was not only very interesting because it was within dollars of the lows that were hit seven times last month at approximately $11,200. With such strong resistance and support sitting about a thousand dollars apart it seems as though BTC futures are clearly in a period of sideways trading action. Very similar to what we experienced in May, June, July and most of August.

Although we are not sure of how long this sideways trading range will last, we can be certain that when it breaks out it will be done in a big and swift move, likely to the upside.

One very interesting facet of price moves over the last few months is that Bitcoin futures have been moving in the same direction as gold and silver. Just as gold and silver usually trade in tandem to the upside or downside, with silver either losing or gaining more on a percentage basis. It seems that Bitcoin joined this synchronized group and just like silver futures would lead in terms of the percentage moves Bitcoin would lead silver.

Whether or not this trend continues it begins to give us a clearer picture of why people are investing in Bitcoin, either as a safe-haven play or as a longer-term play were inflation has caused hard and even digital assets to gain ground in a flight from fiat currencies.