Monday , October 3 2022

Bitcoin's next big move may be hidden in the price of gold


Bitcoin investors can get information on the price of the obvious negative correlation between the prices of the battlefield and the gold.

On November 13, gold saw a strong purchase order of $ 1,196, and on January 4 it was likely to grow to $ 1,300 due to the weakness of the US dollar. In 2019, the US dollar dropped against most currencies in the last two months of the year, in connection with increased speculation that the Fed could reduce or stop rising interest rates.

However, Bitcoin does not take advantage of this extensive sales of the dollar. Crypt the money fell to less than $ 6,000 on Nov. 14, one day after it found about $ 1,200 dollars per ounce of gold.

This price movement shows that the two assets are in a reverse correlation. The 90-day correlation coefficient between the two subjects is -0.593.

As a result, market value and leading Cripp money may be affected by the next gold price movement. At the beginning of the week, the three-week low, reaching $ 1,276, is currently trading at $ 1,280.

Meanwhile, BTC, which follows a 13-day horizon, trades in a narrow range of over $ 3,500. If the corrective adjustment below deteriorates, the consolidation period may end with a strong upward trend.

The following two graphs clearly show the correlation between the price of gold and the cost of the battle:

Bitcoin and gold, as seen above, have been moving in opposite directions since the end of November.

Gold grew by 8.3% in seven weeks, while BTC lost 50% over the same period.

Moreover, gold has tested the resistance of $ 1300 several times and slightly decreased. Bitcoin, meanwhile, has strongly detained $ 3,500 in support since January 11.

Crypto money, if the yellow metal retreats, if it increases rapidly, there may be a strong rise.

News: CoinDesk


Disclaimer statement: What is written here is not investment advice; Investing in Cripp Money is high-risk investment. If you do not have enough experience and knowledge, we recommend that you seek help from a counselor. Each investment decision is under the responsibility of the individual. Uzmancoin and the author of this content is not responsible for personal investment decisions.

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