The price of gold broke its 9-year record; Bitcoin is waiting to cross the resistance
As gold prices rise, evidence suggests that Bitcoin is preparing for a new price jump.
According to Kevin Desk, the price of Bitcoin is in the range close to the resistance of its trend line and is currently trading at $ 9,380.
This line connects the two peaks in the chart recorded on June 1 and 22.
If the price of Bitcoin can break the resistance of 9,330 and maintain it, we will see the end of the downward trend that was created on June 1, after the registration of 10,429.
It should be noted that the current price of Bitcoin is half the peak of its $ 20,000 price. Meanwhile, the price of gold broke its nine-year record by crossing $ 1,801 an ounce.
Gold, which has always been considered a safe haven for investment, needs just another 6 percent price increase to break the historical record. Gold in September 2010 peaked at $ 1,920.
http://s12.picofile.com/file/8402405392/download_6_1200x540_2_1024x461.pngHolger Zschäpitz, one of the most popular macro market analysts, has blamed the real negative profit on US government bonds for the rise in gold prices.
http://s13.picofile.com/file/8402405618/EcMa4ewXsAIot7I_2_1200x741_2_1024x632_2_.pngAs can be seen in the chart above, the real profit of these bonds has risen from -0.3% to -0.73% over the past three and a half months. In the same period, the price of gold rose from $ 1,450 to $ 1,800 an ounce. Given this performance, it can be said that gold acts as a shelter against inflation.
The price of Bitcoin reached $ 10,400 from 3,867 before May 11, during the two-month period. However, we have seen a decline in the strength of this leap, and Bitcoin has repeatedly tried to break the $ 10,000 resistance and secure its foothold in the range above this figure.
More importantly, the correlation between bitcoin and the S & P500 index has become stronger, making it no longer a safe haven for Bitcoin.
However, many analysts are optimistic about Bitcoin's long-term trend and have a positive outlook.
Stephen Stonberg, chief operating officer and director of the Bittrex Global financial division, said in a statement:
We have seen an increase in more bitcoin acceptance and higher awareness of this area by financial institutions.
This causes us to see price increases in the long run. Many well-known individuals and organizations, such as Fidelity, have entered the market, but only a small fraction of them.
During the recent crisis, Bitcoin fluctuations were lower than in other asset classes.
But the situation, formerly known as the "normal", no longer applies to today's economy and the current state of stock markets.
In this new "normal" situation, Bitcoin has introduced itself as a new class of asset that is not affected by government restrictions and money-printing programs.
In May, Paul Todor Jones, one of the world's most famous investors, announced that he had invested 1 to 3 percent of his investment in future Bitcoin contracts.
Since the outbreak of the coronavirus in the United States in March, US Federal Reserve balance sheets have risen more than $ 3 trillion.
It is also important to note that the unprecedented printing of money by the US Federal Reserve and the fear of the consequences of this has led to a significant increase in the price of gold.
It remains to be seen whether Bitcoin can become a haven for inflation in the long run.
Over the past 24 years, Bitcoin has struggled to retain $ 9,330.
If this price level is maintained, the way will be reached to reach the $ 10,000 range.
On the other hand, if the price breaks the weekly price of $ 8,900, we have to wait for the market pressure to increase.
