Bitcoin has long been called “digital gold” and, true to its name, BTC has proven to be a valuable asset in recent years, as this asset yields better profits than gold or shares. As for gold, it has been regarded as a store of value since time immemorial. With the advent of Bitcoin, however, millennia and zoomers seem to be more inclined towards digital gold or gold 2.0.

Bitcoin vs. Gold

With millions of investments in equities or gold, the subconscious tends to take over, as the graphs show, especially the bubbles. The beginning and end of the tulip mania, the Dot Com bubble, etc. all follow a similar pattern, regardless of the time interval.

Source: BTCUSD on TradingView

Bitcoin is also following a similar trend. The attached graph shows the fractal formation between gold and Bitcoin. And when you look at it, you can see that the 2016-2017 cycle that followed Bitcoin was strangely similar to that of gold in the decade after 1982.

But all the similarities don’t end there. The chart below shows that both gold and BTC have experienced a sudden drop in price [red fuse], followed by a rise that matches Bitcoin’s current rise.

Source: BTCUSD on TradingView

In fact, a Twitter user with the screen name “Ethereum Jack” had tweeted an image that showed the gold cycle in front of Bitcoin. In the same way, it is obvious that even volume increases are one-offs. Therefore, it may not be out of the question to expect BTC to increase here.

Store of value

Both gold and bitcoin, which are valuable reserves, are experiencing similar price actions, a development that should be monitored. But that’s not all, since the 90-Pearson correlation between Bitcoin and gold is also on the rise.

Regardless of the similarities, the price of Bitcoin will eventually follow its own path depending on the demand between buyers and sellers. Technical data from the BTC suggests that a downward movement may soon occur. However, this is only possible if the price retreats into the downward triangle.

Link to source

2020-07-10