Over the past two weeks, Bitcoin (BTC) has considerably surpassed gold (XAU), and the upward trend could intensify more.
This perspective is supported by bullish developments in the Bitcoin / Gold ratio, which measures the USD price of BTC against the USD price of Gold by OCCE and the softening of American-Chinese commercial tensions.
Recently, the ratio broke out with a head and reverse shoulder motif, a classic background formation characterized by a large hollow flanked by two smaller ones, with a trend connecting the recovery between the hollows. The break indicates a change of Bull-a-Bullins trend, signaling an additional drinking overperformance.
Last week, the ratio exceeded the trend line and the technical analysis suggests that it could reach at least 35.00 compared to the current 32.00. This target is derived by adding the propagation between the greatest hollow and the trend line at the point of rupture, signaling a potential movement above for bitcoin compared to gold.
The Haussier technical configuration is consistent with the previous data that shows that BTC tends to catch up with gold gatherings.
The Gold meteoric rally culminated above $ 3,500 on April 22, and since then, the yellow metal Safe Haven fell by $ 3,211, according to tradingView data. During the same period of time, the price of BTC increased by almost 19% to $ 104,000.
The United States and China softens trade tensions early on Monday, gold could lose ground while the renewal of the powers of feeling of BTC risk is higher.
The two nations agreed to reduce prices on goods manufactured in the two countries, according to a joint declaration published in Geneva. China has proposed to reduce prices on American products to 10%, compared to 125% for 90 days. Meanwhile, the United States has proposed to reduce prices on Chinese products to 30%, compared to 145%.
“Reduction of prices could see a broader return on risk positioning, with crypto and actions, both likely to benefit from the renewed confidence of investors and world capital flows,” said theodorou, co-founder of Crypto Exchange Coinstash, in Coindesk in an email.
“The rally comes when the macro backdrop takes a positive turn: in a historic decision, the United States has concluded trade agreements with China and the United Kingdom, while Putin and Zelensky should meet on Thursday to discuss a potential cease-fire. These developments have raised the feeling of global risk, including the Crypto,” added Theodorou.
