Crypto Daily - While Bitcoin has continued in its current corrective phase, the prices of gold and silver have headed strongly in the opposite direction. Gold has now surpassed $3,300, and silver is above $33. Will Bitcoin now start to catch up?
Gold goes parabolic
Source: TradingView
The Gold chart is a sight to behold. When the price got up to the top of the ascending channel many might have thought that this was the time for the yellow metal to come back down for its next corrective phase.
None of it! Central banks are probably having a big say in the price of gold over the last year and more. Given the parlous state of fiat currencies, and the incoming gargantuan amounts of government printing in order to service the equally gargantuan debts, the gold price is being pushed to the heavens.
As can be seen in the chart above, the price has punched through the top of the ascending channel - an incredibly bullish feat. The next target of $3,330 is not far above. This is the level of the 2.618 Fibonacci. An inspirational target of $4,200 is at the 3.618 Fibonacci level.
Silver catch-up is coming
Source: TradingView
While not as impressive as the gold chart, the silver chart is certainly seeing some upward progression. Also, with the gold/silver ratio at the almost ridiculous level of more than 100, a silver catch up must be on the cards at some point.
The above weekly chart for silver shows that the price has recently been down to test the 0.382 Fibonacci level. A bounce from here is bullish. The price is at a good level of resistance though. If bulls can break through here, the next target is $35. Beyond this, the next major resistance is probably all the way up at $48.
$50 is the all-time high. It’s probably only a matter of time before this is reached and surpassed. A massive cup and handle pattern could then take the price all the way up to $100.
BTC/XAU - is the local trend about to change?
Source: TradingView
The BTC/GOLD chart is interesting reading. It can be seen that the trend for BTC against GOLD is still very much up, in spite of the current, fairly deep 38% correction.
It should also be noted that the BTC/GOLD pairing is now reaching some decent support levels. Currently at 25 ounces of gold to 1 BTC, the next support levels are at 22 ounces, and then the biggest level at 20 ounces.
Bitcoin has succeeded in making successive higher highs and higher lows against gold throughout its existence. Only if the Bitcoin/gold pairing dropped below 1 BTC to 20 ounces of gold would the trend be threatened.
However, with the Stochastic RSI at the very bottom, the indicators are likely to cross up soon. This could provide momentum for Bitcoin at the expense of gold. It will be interesting to see if this is enough to take Bitcoin beyond the 41 ounce high.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.