Quick Take
Gold continues to set new all-time highs, recently using $2,500 as support and reaching as high as $2,510. Meanwhile, Bitcoin, often referred to as “digital gold,” is trailing behind, currently about 15% below its all-time high. Bitcoin has been in a consolidation phase for nearly six months, contrasting with gold’s steady uptrend. However, this pattern of Bitcoin consolidating while gold appreciates is not new.
Over the past five years, this trend has occurred several times. For example, between 2019 and 2020, gold was on an upward trajectory, briefly interrupted by the COVID-19 pandemic, while Bitcoin remained flat. Once gold’s uptrend concluded, Bitcoin surged in late 2020. Similarly, gold rose from March to May 2021, while Bitcoin stagnated and fell due to the China mining ban. The same pattern emerged in early 2022, with gold climbing as Bitcoin remained flat; ultimately, both assets fell shortly after.
This recurring trend suggests that once gold’s uptrend pauses, Bitcoin may leave this consolidation zone, possibly driven by capital rotation from one asset to another as market sentiment may shift from risk-off to risk-on.
Gold vs BTCUSD: (Source: TradingView)
The post Gold rallies as Bitcoin consolidates: a recurring trend appeared first on CryptoSlate.