Bitcoin: USD/BTC (BTC=X) Flipping Gold is Inevitable
In recent weeks, as Bitcoin price skyrockets, interest in the crypto market has been revived once again. And with it, so has the “digital gold” moniker thanks to Grayscale Investments’ “Drop Gold, Buy Bitcoin” television marketing campaign.
Gold is among the first ever transfers of value used across the globe and is still looked to as a store of value even today, as well as a hedge during economic crisis. However, in today’s digital age, the first ever cryptocurrency as digital gold “flipping” actual physical gold is “inevitable” and when it happens, it’ll take Bitcoin price to $350,000 or more.
Analyst: Bitcoin Flipping Gold is Inevitable
Bitcoin and gold share many similarities, including being used as a currency, transfer of wealth, store of value, and more – they also both can be “mined” for and boast relative scarcity as one of the reasons giving it such value. That scarcity is where the differences between the two assets begin to show.
Bitcoin is hard capped at 21 million BTC, while there is potentially an endless supply of gold that can be tapped into. Gold having a physical attribute over the crypto asset’s digital-based existence is both a pro and a con for the chemical element, making it ideal for jewelry and other flashy material items, but preventing it from easily being transferred or stored. BTC on the other hand has no physical footprint for storage, and can be sent in seconds with a few clicks.
The benefits of Bitcoin in today’s digital age far outweighs anything an archaic asset such as gold can provide. One analyst says that because of this, the cryptocurrency flipping gold is “inevitable.”
Bitcoin Flips Gold at a Price of $350,000 Per BTC
Should Bitcoin actually “flip” gold as this analyst and many other predict, it would take the entire BTC market cap – currently at around $155 billion – and take it above gold’s market cap of $7.5 trillion.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 9,599.43.
The projected lower bound is: 8,060.80.
The projected closing price is: 8,830.11.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 white candles.
An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.
If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with FOREX BTC=), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 78.4973. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 73.23. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 8 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 126.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 13 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 2 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 86.900 at 8,760.900. Volume was 54% below average (consolidating) and Bollinger Bands were 55% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 8,280.86 6,417.72 4,566.02
Volatility: 58 69 76
Volume: 89,261 80,806 78,787
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX BTC= is currently 91.9% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into BTC= (mildly bullish). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 27 periods. Our momentum oscillator is currently indicating that BTC= is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.