Cryptocurrency

Gold is booming – and this means that Bitcoin could be $10,000 to break through

While markets such as Bitcoin and S&P are stagnating 500 in the last few weeks, increased the gold price by leaps and bounds.

As the below chart shows, has shown the precious metal since a break-in 1,670 $ in June strength. Just a few days ago an ounce of Gold for the first Time exceeded since the recovery after the great recession, the 1,800-$-brand.

Chart of gold prices (XAU), over the last 1.5 months of TradingView.com

The asset benefits from a convergence of various Trends – including gold purchases of Central banks extremely loose monetary policy and a weak Dollar.

The Fractal analysis of a crypto-Traders suggests that Bitcoin will also recover, because the precious metal is on the upswing.

Bitcoin should follow, he will rise

Gold was not subject to the same consolidation as Bitcoin. The crypto-currency is Faltering, Gold, however, surged higher and at 1.800 $ pulled over.

An analysis of a pseudonymous trader predicts that BTC will break out it should follow the Gold path, also soon.

The outbreak is bringing Bitcoin to about $ 10,000 and then in the direction of 11,000 $, as shown in the following table.

Analysis of Bitcoin and gold fractal Trader “Ethereum Jack” (@BTC_JackSparrow on Twitter). Graph of TradingView.com

The correlation between the leading crypto-currency, and Gold is no undocumented Trend.

The senior raw materials analyst from Bloomberg, Mike McGlone, wrote in June that the 52-week correlation between the two markets has reached maximum levels. In Bloomberg’s “Crypto Outlook”, June McGlone said:

“The increasing connection with Gold is, in our view, a back wind for the Bitcoin price. At the highest 52 week correlation and the highest ever reached Beta towards the metal, the first-born crypto-currency is likely heats for similar reasons as Gold, by the unprecedented easing of global Central banks, continue to increase. Our graphic shows the Beta of Bitcoin to Gold is close to 2x and the metal on the way to an eight-year.“

Also bullish Paul Tudor Jones, the billionaire hedge Fund Manager is.

He notes that although no explicit correlation between the two markets. Jones believes, however, that both Bitcoin as well as Gold have properties that will enable you to Shine in the current macro-economic environment.

Gold is on the way to a larger rally

Analysts support bitcoin bull case, in addition to, and say: Gold is ready in the coming weeks and months more to purchase.

Mike Novogratz, CEO of Galaxy Digital, spoke on Wednesday with CNBC about Gold. According to him, the precious metal will probably be soon, for the first Time in close to $ 2,000:

“The Federal Reserve and the Central banks around the world simply print more money – more money, more money, more money. And so Gold will take the old highs, $1.950 or so, and it will go on. I think we are only just beginning to do this step.“

Novogratz is also, and especially, in relation to Bitcoin is extremely optimistic: the beginning of the year, the Investor said that the Asset could approach in 2020 or 2021 its all-time high of $ 20,000.

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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