This is a daily technical analysis by Coindesk analyst and chartered market engineer Omkar Godbole. For the past 12 weeks, Gold (Xau) has outperformed Bitcoin (BTC) in the race to withdraw bids, but according to the technology charts, this trend could be on the verge of a reversal.
This year, Gold surged 22% due to Haven’s bids and arbitrary play involving traders moving physical gold from overseas destinations to the US to take advantage of COMEX premiums.
Meanwhile, Bitcoin has dropped by more than 8%. This results in a slide with a Bitcoin Gold ratio of over 25%, representing the unit US dollar price of Bitcoin compared to a 1 ounce gold price.
However, the downtrends, expressed by trendlines drawn from the highs on January 20th and March 3rd, have been overturned this week. This ratio has broken through the weekend’s trendline with a bullish breakout suggesting that cryptocurrency could not outweigh gold and could catch up with yellow metal rally.
This message is consistent with an analysis by Joe Consorti of Thea Research. This indicates that Bitcoin tends to slow down gold for 100-150 days.
The breakout of the trendline is accompanied by a positive flip of the MACD histogram, indicating a bullish change in momentum. The bullish crossover of the simple five- and 10-day moving averages (SMA) seen in the lower pane suggests the same.
The privacy-focused outlook for Monero (XMR) appears constructive after leaving a candle “with long tails” on the weekly chart, exceeding $200, up from $165 last week’s $200.
The tokens are split from a long-term integration pattern, with the 50-week SMA moving over the 200-week SMA confirming the golden crossover, an indicator of long-term bullish changes in momentum.
Immediate resistance was $242, followed by a high of February, $289, an April 2022 high, $200, and a low of $165 last week.