Over the past two weeks, Bitcoin (BTC) has significantly outperformed gold (XAU), and the bullish trend may intensify.
This view is supported by Bullish developments in the Bitcoin-to-Gintin ratio, which measures BTC’s USD price against Gold USD prices per ounce and removing US-China trade tensions.
Recently, the ratio exploded from an opposite head-and-shoulders pattern, a classic bottom formation characterized by a large trough stabbed by two smaller, with a trend that connects recovery between troughs. Breakout indicates a change of bearish-to-bullish trend, which has signed further prevention of Bitcoin.
Last week, the ratio led the trend, and the technical examination suggests that it can increase at least 35.00 from the current 32.00. This target is derived by increasing the spread between the largest trough and the trend at the point of the breakout, which has signed a potential move higher for Bitcoin -related to gold.
The bullish technical set-up is consistent with previous data showing BTC tends to catch gold rallies.
The meteoric gold rally sank above $ 3,500 on April 22, and since then, the safe haven yellow metal has returned to more than 8% to $ 3,211, per tradingview data. In the same time frame, the price of BTC rose almost 19% to $ 104,000.
With the prevention of US and China trade tensions early Monday, gold may disappear into the ground while the modified powers at BTC risk are higher.
The two countries have agreed to lower tariffs on goods made in both countries, according to a joint statement released in Geneva. China suggested to reduce tariffs on US goods by 10% from 125% within 90 days. Meanwhile, the US suggested cutting tariffs on Chinese goods up to 30% from 145%.
“Tariff reduction can see a broader return to risk-in positioning, with cryptors and equally likely to benefit from the revised investor confidence and global capital flow,” Mena Theodorou, co-founder of the Crypto Exchange Coinstash, told CoinDesk in an email.
“The rally arrives as the Macro backdrop takes a positive turn: in a landmark move, the US struck the trade deal with both China and the UK, while Putin and Zelensky were scheduled to meet on Thursday to discuss a potential stop.
