Veteran technical analyst Peter Brandt recently pointed out that Bitcoin is continuing to outperform gold in the long-term store-of-value narrative.
In his latest evaluation of the BTC/GLD ratio, Brandt highlighted how the premier cryptocurrency has been consistently surpassing gold and could potentially experience a significant rally if it breaks through key resistance levels.
Bitcoin vs Gold
Brandt’s analysis revealed a sustained uptrend in the BTC/GLD ratio, indicating Bitcoin’s growing dominance over gold in recent years. The ratio has historically found support around 14 oz, sparking the current upward trend.
Brandt identified a significant resistance level at 32 oz of gold, indicating a pivotal point where Bitcoin’s strength may face strong opposition.
If Bitcoin manages to break above this barrier, Brandt predicts a target of over 100 oz of gold per Bitcoin, with a long-term projection reaching as high as 123.75 oz. With current gold prices around $2,613 per ounce, this translates to a Bitcoin price target of $323,358.
Furthermore, the chart illustrates Bitcoin’s price movements following a pattern of rising wedges and breakout formations. The current setup forming an ascending triangle suggests a bullish trend.
It’s worth noting that Bitcoin has experienced similar parabolic runs in the past, and sustaining its current upward momentum could lead to achieving Brandt’s target.
Brandt also acknowledges a 30% probability of a market reversal, potentially affecting Bitcoin’s dominance. Nonetheless, the overall outlook favors Bitcoin surpassing gold if it overcomes the resistance level.
BTC/GLD Short-Term Outlook
On a short-term basis, caution is advised as BTC currently trades below the 21-week Simple Moving Average (SMA) of 25.59 oz per BTC, hovering around 23.27 oz.
The failure to break above this moving average signals potential short-term weakness, further indicated by the Relative Strength Index (RSI) at 45.49, reflecting a neutral-to-bearish sentiment.
The declining RSI in recent weeks adds to concerns about Bitcoin’s immediate bullish prospects. A sustained rally would necessitate breaking back above the 21-week SMA and transitioning the RSI into bullish territory.
The 21-week SMA has historically served as a crucial turning point for Bitcoin. The last significant breakout above this average occurred in October 2023, leading to a 112% surge and peaking at 34 oz in March 2024.
Reclaiming this level of momentum and surpassing the 25.59 oz mark could potentially reignite an upward trend, aligning with Brandt’s projection.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
**Additional Insight:**
Bitcoin’s ability to consistently outperform gold in the long-term store-of-value narrative highlights the growing recognition of cryptocurrencies as a viable alternative asset class. With increasing institutional adoption and mainstream acceptance, Bitcoin’s potential to challenge traditional stores of value like gold is becoming more evident.
Investors should closely monitor key resistance levels and technical indicators to assess Bitcoin’s short-term momentum. While the long-term outlook remains positive, short-term fluctuations based on market sentiment and technical factors can impact price movements. Diversification and risk management strategies are essential for navigating the volatility in the crypto market.
