Bitcoin | Page 20 | 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.

HD Charts Gallery

Previous Reports:

Tuesday, April 7, 2020 - 17:32
What we witnessed today was a round of profit taking in the U.S. dollar, gold and Bitcoin. Bitcoin futures as of 5 PM EST are trading down about 2.5% at $7,200. Even with a dip in pricing today BTC is still acting very bullish and should continue onto higher pricing. Today marks the fifth consecutive higher low for Bitcoin futures and the first open above the 21-day exponential moving average... Read more
Monday, April 6, 2020 - 18:44
Bitcoin is reacting to markets rallying today. Some of which like the U.S. indices are surprisingly all trading up over 6% at the close, I say surprisingly because I believe it is unwarranted. Experts say that the equities are responding positively to news that Europe may have passed its apex of new Covid-19 cases meaning that the new cases by day should start to decline. In the U.S. the apex is... Read more
Friday, April 3, 2020 - 17:39
  Bitcoin showed signs that it is no longer trapped inside a narrow range and has made its exit from sideways trading. Next week will likely take it to higher pricing. When it broke out of its price range of $5,700 to $6,700 yesterday when BTC futures had their first close above $6,700 since March 12th. The high on March 12th was just at $8,000 which is also were I believe BTC is headed... Read more