Bitcoin could reach in the coming quarter of $ 14,000.The analogy stems from two extremely bullish Calls for the US Dollar and Gold.Bitcoin has shown this year, an extreme correlation with the two macro systems.
Bitcoin may still be fuel left to its movement to continue in the direction of the 14,000-Dollar-brand.
The Stand, which was last reached in 2019 against the Backdrop of an escalating trade war between the US and China and a falling Yuan is again cops on the Radar of the Bitcoin. Only this Time, the weakening US has replaced the Dollar, his Chinese counterpart as a bullish catalyst for the crypto currency.
In the meantime, inflation fears, which were caused by the policy of the US Central Bank, the improved upside prospects of Bitcoin. The bids for safe havens have become higher, since the Central Bank keeps its interest rates close to Zero, resulting in the bond yields down.
This has driven the price of Bitcoin and its traditional Hedging-rival, Gold, to the top.
The Performance of Bitcoin and Gold against the US Dollar Index. Source: TradingView.com
At the time of writing tradete BTC/USD to 64 percent higher. The XAU/USD rose to 36,93 percent.
An ugly American-Dollar-quarter advance
Technical readings to see Bitcoin and Gold as overbought assets. With simple words: Both are under the risk of downward corrections due to profit taking.
Traders can sell to their local highs, in order to secure short-term profits and as a result, the demand for the US driving the Dollar higher.
But then one Analyst sees the Dollar in a dangerous Zone. Win Thin, head of global currency strategy at Brown Brothers Harriman, told CNBC that the Dollar could fall in the current and next financial quarter, where he makes the inability of the United States, the COVID pandemic, to effectively reduce the such as Europe and other areas.
“This is one of the rare cases in which Europe outperforms the US in fact,” says the Analyst. “The stars stand in a row with the Dollar.”
The DXY has broken below its long term support trend line. Source: TradingView.com
He added that the US Dollar Index is on its way to its seventh weekly decline in a row, could fall before the end of 2020, on its low of 2018.
“I suspect that we will test in view of the cyclical development of the lower side of this range, and for the DXY [Dollar Index] is at 88”, so Thin.
“So, we still have some way ahead of us.”
The negative correlation between the Dollar Index and Bitcoin has increased since the global market is routine in March. Therefore, any weakness in the dollar may indicate a more substantial future of Bitcoin, which is the psychological moves upward target of 14,000 US-dollars in the near future.
A bullisher Gold-Call and Bitcoin
The mood against the US Dollar in the first Well, which will benefit the most, Gold. EB Tucker, the Director of the Canada-based company Metalla Royalty, declared Kitco in his last Interview, he may see the precious metal by the end of this year to 2,500 dollars.
“Normally, I would say [the bull barrel is overheated], but what I see in daily practice, is that Gold is rising in a very measured way and not to much resistance, and when that happens, you just go out of the way and lets it go, that is what you are doing”
Tucker had previously predicted that the gold price would reach $ 2,000 – a forecast that proved true at the beginning of this week.
A booming gold forecast Bitcoin typically under a similar bullish spell.
The Bitcoin Gold correlation of high reached a new year. Source: Skew
The one-month realized correlation of the crypto currency with the precious metal peaked at 6. August 68.7 per cent – the highest value this year. Since the correlation persists in the further course of the year, could Bitcoin reach at the end of 14.000$, while Gold 2.500 reached$.