Bitcoin Reaches Critical Juncture Against Gold with Brandt’s Identification of Descending Channel
The Bitcoin-to-Gold ratio has reached a critical point, with market analyst Peter Brandt suggesting the potential for a tradable local low. Brandt recently shared a chart of the BTC/GC (Bitcoin/Gold) ratio on X, highlighting a descending channel that could indicate a reversal. This development has sparked interest in the market, given the ratio’s downward trend over the past few months.
At the beginning of 2024, Bitcoin showed strong performance compared to gold. The BTC/GC ratio surged from 20.5 at the start of the year to a peak of 34.08 on March 13, marking a substantial 66% increase in Bitcoin’s price relative to gold in the first quarter.
This upward movement was largely driven by Bitcoin’s significant price surge, reaching a new all-time high above $73K in March. In comparison, gold also experienced growth in Q1 2024, rising from $2,069 at the start of the year to $2,194 in early March. However, gold’s gradual increase did not match the rapid surge of Bitcoin.
Following the peak on March 13, Bitcoin underwent a correction, leading to gold gaining ground against Bitcoin. The BTC/GC pair formed a descending channel post-correction, with lower highs and lows indicating a potential breakout point on the horizon.
Bitcoin critic Peter Schiff recently highlighted this trend, noting strong support around the 23.00 level where Bitcoin recently rebounded. The upper boundary of the channel, situated around the 28.00 area, has presented consistent resistance. Brandt’s latest observation suggests that the recent bounce may signal a potential upward move for Bitcoin against gold.
The current ratio hovers around the 23.16 level, a crucial support zone tested multiple times in recent months. The Relative Strength Index (RSI) at 50.74 indicates neutrality, having bounced from oversold levels, hinting at a possible slowdown in downward momentum. Key resistance levels to monitor include the top of the channel near 28.00, with a breakout potentially leading to a test of the 30.00–32.00 region, a significant overhead resistance.
If Bitcoin fails to break above the channel and faces rejection near 28.00, it could continue its downward trajectory within the channel. In such a scenario, the lower boundary near 21.00 or even 20.00 would be the next target. A breach below 23.16 would further confirm a bearish outlook.
It is important to note that this content serves as information and not financial advice. Readers are advised to conduct thorough research before making investment decisions, as personal opinions expressed here do not necessarily reflect The Crypto Basic’s stance.
