Benjamin Cowen, an influential name in the crypto world, made an important observation about the relationship between gold and Bitcoin. According to Cowen, gold’s performance could be an indicator of Bitcoin’s recent strength. According to Cowen’s analysis, if gold continues to perform well, Bitcoin, the largest crypto asset by market cap, could enter an extended correction.
Based on historical data, Cowen notes that gold’s rise could signal some sort of local top for Bitcoin. For example, while gold rose in 2019, Bitcoin showed a significant increase a year later. Similarly, this year we see gold rising as the Bitcoin/USD parity reached a local peak in March.
This observation by Cowen suggests that gold’s strength could have an impact on Bitcoin’s future performance. If gold continues to perform well, a scenario may arise in which Bitcoin may decline after a consolidation process rather than a sudden rise, according to Cowen. This could mean that Bitcoin could break below the moving average.
Cowen also noted that Ethereum (ETH)’s breakout against BTC (ETH/BTC) is also correlated with Bitcoin tops and that this has already potentially begun.
“The other thing that is happening is the ETH/BTC breakout. So if you look at the breakdown of ETH/BTC, when it starts to break out, you can see the last cycle where BTC/USD marked the top before a larger correction, and you’re kind of looking at something similar [ bu yıl].”
NEWS CONTINUES BELOW
The crypto analyst then says that the depreciation of altcoins against BTC could be another sign of Bitcoin peaking, but this time, according to the analyst, such a situation has not happened yet.
“[Altcoin’ler] When it crashed last cycle, this marked the local top for Bitcoin. And while altcoins are losing ground against Bitcoin, Bitcoin has still made some pretty nice gains. This has not happened yet. Altcoins experienced some decline below this level, but weekly closes below this level were not permanent.
Therefore, it is not clear in which direction Bitcoin will ultimately break. My best guess as to what will happen is basically [66.000 ila 56.000 dolar arasında] “I would say it will spend a lot of time between the 8-week SMA and the bull market support band over the next few weeks.”
At the time of writing, BTC is trading at $63,600, up 1% in the last 24 hours. At the beginning of 2024, it was trading at around $44,000.
You can access current market movements here.
