Why Bitcoin's Rally Hasn't Started? What's Awaiting BTC? Analyst Explains!
Bitcoin (BTC) has been stuck between $120,000 and $110,000 for far too long. While investors are now expecting a major rally, one analyst said that Bitcoin’s rally is tied to gold.
As is well known, gold has recently broken records, surpassing $3,900. And with the recent surge in traditional markets, gold has surpassed Bitcoin.
Known as digital gold, BTC has been stuck in the $100,000 to $120,000 range for nearly three months after reaching new highs in July and August.
Charlie Morris, Chief Investment Officer of crypto research firm ByteTree, said these movements in gold and Bitcoin follow a pattern. According to the analyst, gold and Bitcoin tend to move in rotation: “When gold is bullish, Bitcoin tends to consolidate; when gold is cool, BTC usually continues its upward trend.”
Speaking to Coindesk, Charlie Morris said that Bitcoin could start to rise once the current rise in gold fades.
Morris reported observing an alternating strength pattern between gold and Bitcoin over the past two years, noting that between January and April, BTC fell by approximately 30% while gold rose by 28%.
Then, while the price of gold stagnated until August, BTC rallied 60% from its low.
According to this data, Morris stated that although gold has risen for seven consecutive weeks, BTC remains below $120,000, so when the rise in gold slows down, Bitcoin will rise again.
“Gold loves low interest rates and a weak economy, while Bitcoin loves a strong economy. Because Bitcoin loves a super strong economy, and low interest rates are associated with recessions.
If the correlation between Bitcoin and gold persists, a pause in the gold price, or even a sideways movement, could signal BTC’s next range breakout and another trip to records.
“As a result, I think this bullish reversal between Bitcoin and gold will continue. Because the good news for Bitcoin is that sooner or later, gold will tire.”
*This is not investment advice.