RATE Group | Bitcoin And Gold’s Divergence Could Be About To Get Tested
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Bitcoin And Gold’s Divergence Could Be About To Get Tested

15 Aug Bitcoin And Gold’s Divergence Could Be About To Get Tested

Posted at 14:26h in Bitcoin News by

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With Gold prices stretched and Bitcoin Around Key support, convergence could be approaching.

In previous analysis we’ve highlighted a positive (although imperfect) correlation between Bitcoin and USD/CNY. And in recent times we’ve seen Bitcoin and gold rise in tandem during bouts of risk off, although we can see the relationship has broken down these past 10 days. Curiously, the positive correlation between gold and bitcoin broke down just after USD/CNY broke about 7 – a level many didn’t expect to see break.

Bitcoin

 

In some way this appears encouraging to see as it could serve as a reminder that gold has stood the test of time as the true safe-haven. Moreover, in a world of negative yields, a gold brick that yields zero looks quite appealing.

However, given the strong bullish structure of Bitcoin and lack of mean-reversion on gold, we suspect the two could converge and provide a potential buying opportunity on Bitcoin or (for the more daring) shorting…

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