Bitcoin | The Gold Forecast

Bitcoin soldf off with other major hard assets

Wednesday, August 12, 2020 - 20:06 by Joseph M. Wagner II

Last night or Tuesday morning overseas gold futures began trading lower and by the time that New York markets were opened for trading it was not long before gold futures broke back down below $2,000 per ounce. Gold was not alone in losing over 5% in fact, all of the precious metals lost at least 5% in value yesterday. Interesting because Bitcoin was also trading down $500 or 4% was down 5% at its lows on Monday.

 

In our first chart we have daily candlestick charts of BTC futures on top and gold futures bellow from the start of 2020 to present day. It’s shocking how large moves in one market usually appear in the other market with similar lows and especially highs occurring in the same time frame in both gold and Bitcoin.

 

Then I asked the question, if recent rallies in Bitcoin were synchronized with gold but hasn’t yet matured into a true safe haven what does this tell us? To me it is clear that Bitcoin is being used more and more just as gold has served for decades, the flight from cash.

 

In fact, our second and third charts demonstrate how the U.S. Dollar Index (DX #F) has traded pretty accurately opposite the moves in BTC. Today we had further weakening in the dollar index down half a percent today. This however was not enough to take the overcrowded precious metals higher as all were lower today. Bitcoin futures however traded up by 1.5% and with all the capital flooding out of central bank currencies and an already overly inflated precious metals complex Bitcoin is poised to be the next place people may want to hold rather than an inflationary currency.

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Previous Reports:

Wednesday, August 5, 2020 - 18:24
Last Monday, July 27th BTC futures broke above $10,500 for the first time this year. The level of $10,500 has held historical résistance and was effectively a ceiling for the entire first half of 2020. Since breaching this price point with a 13% gain last Monday BTC futures have been consolidating from approximately $11,000 - $11,500 for the last 5 trading sessions holding on to the vast gains... Read more
Monday, August 3, 2020 - 18:19
Bitcoin futures on the CME are trading slightly higher on the day currently up $10 on the day and trading at $11,610. This docile appearance of recent actions would not be so calm on actual Bitcoin traded across many platforms. Over the weekend specifically on Sunday, Aug. 2nd the price of bitcoin had a flash of a correction when according to Cointelegraph “Bitcoin declined by more than 13%... Read more
Tuesday, July 28, 2020 - 17:14
Bitcoin futures blasted off on Monday not only past the prior high for the year but more importantly it has traded above the descending top that has defined price action since Bitcoin futures began trading at the end of 2017.  This upper level of resistance had only been touched upon at the peak of the 2019 rally and once more last month on the June 2nd’s intraday high. This gives the... Read more