Bitcoin is setting up to outperform gold, analysis by Theya Research’s Joe Consorti suggests. This unusual bullish forecast comes on the heels of a trendline breakout and a recently confirmed golden crossover. At the same time, Monero (XMR) offers a positive picture following impressive recovering.
Consorti’s analysis has shown that Bitcoin usually leads gold with a delay of about 100 to 150 days. Technical charts show signs of a bottoming reversal in the trend. Gold has actually beaten Bitcoin over the last 12 weeks, but that will be short-lived. Over the weekend, the ratio of Bitcoin to gold broke upward through a long-term trendline — a bullish breakout signal.
Bitcoin’s 50-week simple moving average (SMA) has crossed above the 200-week SMA, confirming a golden crossover. This crossover is the loudest early warning key indicator that has crossed over to show a long-term bullish shift in momentum for Bitcoin. In addition, Bitcoin has just recently broken out of a year plus long consolidation pattern, adding to the bullish momentum.
Though down more than 8% on the year thus far, the overall downtrend in Bitcoin has been invalidated this week. Immediate resistance for Bitcoin is at $242, the February high, followed by $289, the April 2022 high. Key support levels are set at $200 and last week’s low of $165.
Monero (XMR) exhibits promising signs. The past week's sharp recovery of Monero from $165 to over $200 left a "long-tailed" candle on the weekly chart. This “long-tailed” candle is interpreted as a bullish sign of dip demand, showing aggressive buying interest at lower price levels.
These are technical developments explained by CoinDesk analyst and Chartered Market Technician Omkar Godbole. Godbole personally owns small amounts of Bitcoin, Ether, BitTorrent, Tron and Dot. His analysis goes a long way in helping the public understand these market movements.
