Bitcoin Shows Strong Correlations With Gold and Silver, Could Stage Full Recovery Soon
Login

Bitcoin Shows Strong Correlations With Gold and Silver, Could Stage Full Recovery Soon

Estimated Reading Time: 2 minutes

Azeez Mustapha

Updated:
Bitcoin (BTC/USD) remains significantly bullish in an ascending wedge, despite numerous attempts by bears to pull the price down over the past couple of days.

In the 4-hour timeframe, we can see that the base of the ascending wedge has been tested several times, but bears have been unable to take the price lower. However, bulls are also having a difficult time taking prices above the $11,800 level. This has cast a consolidation momentum on Bitcoin in the near-term as both bulls and bears recover.

Glancing at other markets, we can notice that Gold (XAU/USD) and Silver (XAG/USD) are in a strong rebound from a sharp decline that occurred on Tuesday.

Bitcoin has been showing an increasing-price correlation with the precious metals of late. When the strong reversal took place in the commodities, Bitcoin shed about $800 almost immediately.

BTCUSD – 4-Hour Chart

Key Levels To Watch

With Silver showing good prospects for a recovery in the near-term, we could see Bitcoin recover as well to its previous highs before/by the weekend.

Also on the 4-hour chart, we can see that the 50 HMA and the 100 HMA have formed a mini channel for BTC over the past few days.

A break and close above the 50 HMA could serve as a signal that Bitcoin bulls are implementing a recovery as seen on the XAG/USD chart earlier today. If we get a comfortable break and close above the $11,750-800, the $12,000-100 resistance would be attempted once again. If Bitcoin finally defeats this region, we could be propelled to the $13,500 level fairly quickly.

Total Market Capital: $365 billion

Bitcoin Market Capital: $216 billion

Bitcoin Market Dominance: 59%

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News