A widely followed cryptocurrency analyst says gold may just represent a local top of Bitcoin (BTC)'s recent strength.
In a new video update, cryptocurrency strategist Benjamin Cowen tells his 800,000 YouTube subscribers that if gold prices continue to perform well, the top crypto asset by market cap could be in for a long correction. Told.
“We can see that the 2019 gold breakout marked a local high for Bitcoin, at least so far. A year later, Bitcoin is clearly up. Still. [this year]you can see that gold skyrocketed when Bitcoin/USD found its local top in March.
So, that's one thing – if gold continues to do well, the implication is that Bitcoin could actually fall after consolidating below levels for eight weeks. [moving average] Instead of showing a popup like last year. ”
Cowen goes on to point out that the Ethereum (ETH) vs. BTC (ETH/BTC) breakdown also correlates with Bitcoin's all-time high, which could have already begun.
“Another thing that's already happening is the collapse of ETH/BTC. So if you look at the breakdown of ETH/BTC, the last cycle was once it started to break down, then before a bigger correction occurred, BTC/USD marks the top, indicating a similar situation. [this year]”
At the time of writing, ETH/BTC is trading at 0.05143 ($3,258).
Cryptocurrency analysts then said that if altcoins bleed against Bitcoin, it would be another sign of Bitcoin's all-time high, but that hasn't happened yet this time.
“when [altcoins] broken [last cycle], marked Bitcoin's local top. And as altcoins fell against Bitcoin, Bitcoin still had a pretty nice rally. That hasn't happened yet. Altcoins fell below that, but weekly closes below that were not durable.
Therefore, it is not clear in what direction Bitcoin will ultimately break out.My best guess as to what will happen is that it will basically bounce back [between $66,000 and $56,000]…We will spend a lot of time in the coming weeks between the 8-week SMA and the bull market support band. ”
At the time of writing, Bitcoin was trading at $63,386, down 1.2% in the past 24 hours. As of early 2024, it was hovering around $44,000.
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