Macro Minute: Gold's Breakout Hints at Bitcoin's Next Move
Gold's multi-year Wyckoff accumulation applied to Bitcoin's multi-month accumulation
Gold bugs finally get some bitcoin-esque price action. It broke to new ATHs earlier in the year and is extending the move, approaching $2,500/oz.
Gold is Bitcoin’s cousin. Its monetary characteristics cause a similar performance in the current macro environment. This is why in my 2024 forecast I predicted that Bitcoin and gold would have fantastic years (with Bitcoin outperforming of course). Specifically, those characteristics are that Bitcoin and gold are assets that do not rely on proper functioning of the underlying financial system for their value. Indeed, they benefit from a malfunctioning financial system. As we head into recession, these safe havens will catch a bid.
Since 2020, gold has completed a textbook Wyckoff reaccumulation. It consolidated after a good performance in 2019-2020, importantly hitting the spring phase at the end of 2023. We see the very same pattern in the Bitcoin chart, however, on a much-accelerated timeline. Bitcoin began its reaccumulation in March after the post-ETF rally, and hit the spring phase the first week of July.
If we condense the break out pattern in gold, and attach it to the Bitcoin chart, we get the result in the right pane above. If Bitcoin follows the pattern from its cousin, we will be approaching $90,000 by the end of September.
Hold strong and have a great day,
Ansel
- Were you forwarded this post? You can subscribe here.
- Please SHARE with others who might like it!
- Join our community on Telegram!
- Become a Professional member and unlock premium content!
DONATE directly on Strike or Cash App to support my work! You make my content possible! Thank you.
Disclaimer: The content of Bitcoin & Markets shall not be construed as tax, legal or financial advice. Do you own research.
