In the last two weeks, Bitcoin (BTC) has significantly exceeded gold (Xau), and the upward trend could intensify even more.
This perspective is backed by bullish developments in the Bitcoin-Gold ratio, which measures the price of BTC USD against the price of USD of Gold per ounce and relieving commercial tensions between the United States and China.
Recently, the relationship came out of a reverse pattern of head and shoulders, a classical background formation characterized by a large channel flanked by two smaller, with a line of trend that connects the recoveries between channels. The rupture indicates a change in bold tendency to a bullish, indicating a higher Bitcoin performance.
Last week, the relationship exceeded the line of trend, and the technical analysis suggests that it could increase to at least 35.00 of the current 32.00. This objective is derived by adding the propagation between the largest channel and the line of tendency to the breakdown, indicating a possible movement for Bitcoin in relation to gold.
The bullish technical configuration is consistent with the past data that shows that BTC tends to reach the gold manifestations.
The Gold meteoric rally reached its maximum point above $ 3,500 on April 22, and since then, the Safe Haven Yellow Metal has retired more than 8% to $ 3,211, according to View Trading data. During the same period of time, the BTC price has increased by almost 19% to $ 104,000.
With the United States and China relieveing early commercial tensions on Monday, gold could lose ground, while the powers of faster renewed risk.
The two nations agreed to reduce tariffs on goods manufactured in both countries, according to a joint statement published in Geneva. China has proposed to reduce tariffs on 10% American goods from 125% for 90 days. Meanwhile, the United States has proposed to reduce tariffs to Chinese products to 30% from 145%.
“Rate reduction could see a broader return to risk positioning, with crypto and income that will probably benefit from the renewed investor confidence and global capital flows,” said Mena Theodorou, co -founder of Crypto Exchange Coinstash, to Coindesk in an email.
“The rally occurs when the macro backdrop takes a positive turn: in a historical movement, the United States has reached commercial agreements with both China and the United Kingdom, while Putin and Zelensky will meet Thursday to discuss a possible fire. These developments have raised the feeling of global risk, they included crypto,” Theodorou added.
