Both Bitcoin (BTC) and gold have once again been caught in the throes of volatility that have allowed them to form fresh levels of support and resistance that will likely continue to hold strong in the near-future.
Despite this volatility, Bitcoin is still in a firm bull market, and analysts are now noting that gold – and asset that BTC is often compared to – has been facing increasing downwards pressure. But is gold’s poor performance as of late good for Bitcoin?
Bitcoin Begins Climbing Higher Despite Recent Drop
At the time of writing, Bitcoin is trading up just under 2% at its current price of $11,500, which is up significantly from its daily lows of $10,900.
Over the past week, BTC has been forming a pattern of consolidation that has elucidated the cryptocurrency’s current levels of support and resistance, which currently appear to exist at $9,800 and $12,000 respectively.
Assuming that these levels continue hold strong, it is highly likely that Bitcoin will face increased selling pressure as it gets closer to $12,000, which is only slightly above its current price level.
Josh Rager, a popular cryptocurrency analyst on Twitter, spoke about BTC in a recent tweet, explaining that he is leaning bullish on the crypto currently, as it has been able to flip its previous resistance level to a level of support.
“$BTC looking bullish: Flipped resistance into support right on the close of the 4 hour chart. At this time, I see Bitcoin retesting local highs if it can hold current support. This would be quite bullish for likely continuation upward,” Rager noted.
Gold Plummets Lower as Global Economy Expresses Stability
As of late there has been a growing movement to call Bitcoin “digital gold” or “gold 2.0,” but recent data regarding the US and global economy being stronger than anticipated sent gold’s price reeling down from highs of over $1,420 to its current price of $1,399.
This drop, which came on the heels of stronger-than-anticipated job data, signals that the bulk of Gold’s price action is still highly correlated with data regarding the state of the US and global economy.
Although many investors like to consider Bitcoin as a “safe-haven” investment class, its recent climb and current bullishness seems to signal that its price action is not at all correlated with the state of the global economy and is likely to continue moving independently in the near-future.