Since March 2020 Gold has taken a beating as measured against Bitcoin with a drop of 90%. That’s about to change.
On the above 2-day chart a regular bullish divergence has emerged between price action and the oscillators following the oversold condition (orange column).
On the 10-day chart the Money Flow Index has broken out from resistance. Price action returned to the 21-week moving average (green) in previous breakouts, currently 150% away.
I know the bitcoin bulls are not going to like this, however the last two occasions those oversold conditions occurred in the Gold / Bitcoin pair, Bitcoin dropped 80% & 60%, respectively. A repeat of 60% would take Bitcoin to $20k in dollar terms.
Target? No clue - will update idea when overbought.
Action to take? Not financial advice - however I use those opportunities to swap a good chunk of the Bitcoin stash into gold if you want more Bitcoin. You could 2x your Bitcoin holdings here. PAX Gold on Binance makes it super simple.
Good luck.
10-day chart - MFI resistance breakout
On the above 2-day chart a regular bullish divergence has emerged between price action and the oscillators following the oversold condition (orange column).
On the 10-day chart the Money Flow Index has broken out from resistance. Price action returned to the 21-week moving average (green) in previous breakouts, currently 150% away.
I know the bitcoin bulls are not going to like this, however the last two occasions those oversold conditions occurred in the Gold / Bitcoin pair, Bitcoin dropped 80% & 60%, respectively. A repeat of 60% would take Bitcoin to $20k in dollar terms.
Target? No clue - will update idea when overbought.
Action to take? Not financial advice - however I use those opportunities to swap a good chunk of the Bitcoin stash into gold if you want more Bitcoin. You could 2x your Bitcoin holdings here. PAX Gold on Binance makes it super simple.
Good luck.
10-day chart - MFI resistance breakout
Trade active
Trade active
Is gold going to outperform Bitcoin for the remainder of this year? The chart is suggesting as much.Note
A tiny 10% gain so far, nonetheless, Gold appears to be outperforming its digital cousin.Note
Now up around 36% against BTC.An overbought condition does not yet exist. However, I would start planing profit taking. Yes Gold could continue and Bitcoin its correction, however the risk / reward is not nearly as attractive as it was some weeks ago.
Trade closed manually
70% gain against BTC now with overbought condition (green column). Never thought for a moment that would happen when publishing this idea.Note
Thought worth adding. A 'hanging man' candle was printed 2-weeks ago with the close of last week confirming the reversal. What does this mean? Be long Bitcoin, not gold.Note
Don't be in this trade if you still are. Weekly Stochastic RSI has crossed down indicating there is a high degree of probability BTC will outperform Gold in the weeks ahead.Trade active
62% return thus far and now breaking out once more, target as shown.Trade closed manually
60% more Bitcoin and now a bearish divergence - time to get out.This bearish divergence will be as powerful for Bitcoin price action as was the bullish divergence when the correction from $60k began.
BTC
bc1q2eckdzh0q8vsd7swcc8et6ze7s99khhxyl7zwy
Weblink: patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
bc1q2eckdzh0q8vsd7swcc8et6ze7s99khhxyl7zwy
Weblink: patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
BTC
bc1q2eckdzh0q8vsd7swcc8et6ze7s99khhxyl7zwy
Weblink: patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
bc1q2eckdzh0q8vsd7swcc8et6ze7s99khhxyl7zwy
Weblink: patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.