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Bitcoin

EERIE GOLD FRACTAL FROM 2020 LEAVES BITCOIN EXPOSED TO $27K-RETEST

Bitcoin’s price correction from its record high of approx $42,000 in early January appears eerily similar to that of spot gold in August 2020.

In retrospect, the precious metal rallied to its all-time high of $2,075.28 on January 8. Its wild move upward prompted traders to secure profits. As a result, the XAU/USD exchange rate started correcting lower in the later sessions. The pair formed a support area between $1,847-1,863, which it eventually broke in late November, falling to as low as $1,764.

Gold, XAUUSD, precious metal, gold futures

Spot gold broke bearish on its descending triangle pattern, only to reclaim its support level less than a week later. Source: XAUUSD on TradingView.com



GOLD-BITCOIN SIMILARITY

Marc Principato, the executive director of digitally-operated Green Bridge Investing, highlighted gold’s growing influence over the Bitcoin market in a note published Sunday. Just like the precious metal, the flagship cryptocurrency formed a consolidating descending channel pattern after forming its record high, leading Mr. Principato to envision BTC/USD at $27,500.

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