Buy Bitcoin Sell Gold: A Trading Opportunity

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Gold was the flavor of the season at the start of the year.

US inflation saw a sharp uptick and then the Russia-Ukraine war followed. Both were positive for gold.

Gold prices rallied from $1,800 to the high of $2,078 in the COMEX futures. At the same time, bitcoin and equity markets corrected.

But now they have reversed. This indicates to us that the worst is over.

In charts: Bitcoin vs Gold

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In charts: Bitcoin vs Gold

The comparison chart of bitcoin futures (left) and gold futures (right) tells us that gold may lose its shine over Bitcoin.

The slope of gold prices is negatively biased while the opposite is true for the price action in bitcoin.

The daily chart of bitcoin futures has just broken out from the bullish pattern called a ‘double bottom’. The price broke above the neckline at $45,000, retested it, and then resumed its bullish momentum.

What’s more convincing is the double bottom breakout. It’s right at 62 trading days which is the Fibonacci time-cycle breakout.

Additionally, it’s now trading above its long-term 200 DEMA. This strengthens our stance on preferring bitcoin over gold.

I’ll share more on this trend on my Telegram group. If you’re interested in being part of my charting journey as I share how to create wealth from profitable trade setups, join my telegram channel – Fast Profits Daily.

Disclaimer:  This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

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(This article is syndicated from Equitymaster.com)

 

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