Silver Fractal Says: Bitcoin Is Ready To Explode Higher
In the past few months, the narrative has emerged that Bitcoin is closely correlated to gold. However, according to a recent analysis shared by a crypto trader, BTC may actually be closely correlated with silver. The problem with this correlation is that silver’s price action precedes Bitcoin’s by a few weeks.
Fundamentals point to an upswing
Fundamentals, like the silver fractal mentioned above, also suggest that Bitcoin will likely continue to move higher from here.Mike McGlone, the chief commodities analyst at Bloomberg Intelligence, believes Bitcoin’s volatility trend suggests an uptrend is intact:
“The price of #Bitcoin per ounce of #Gold, which has been between 3-9x in recent years, is tilting the cryptocurrency towards a resumption of appreciation if the volatility story tells us something. The August 19th cross rate of 6x is the same as 2017, but Bitcoin’s volatility has decreased compared to gold. “
McGlone has been promoting the Bitcoin bulls case for months. Another key point of his positive sentiment is the influx of investment into the cryptocurrency space, exemplified by institutional cash flows through the CME, Grayscale and other channels:
“Bloomberg Intelligence Commodity Primer – Something unexpected has to happen for the price of #Bitcoin to stop doing what it has been doing for most of the last decade: appreciating. The demand and adaptation metrics are still cheap compared to the unique feature of the #crypto-asset, the fixed supply. “