Bitcoin Primed to Move Higher as Gold Looks to Retake Key Level<\/strong><\/h2>\nOne top cryptocurrency trader recently shared<\/a> this chart below, which shows that the price of gold is primed to retake a crucial support level. The level held as support on three distinct occasions over the past two months.<\/p>\nGold retaking this level would likely help Bitcoin as the two markets have been quite correlated over recent months. The analyst thinks that gold retaking the aforementioned support at $1,900 will trigger an uptrend to $2,000. The last time gold traded above $2,000, BTC was trading above $11,000 and near $12,000.<\/p>\n
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Chart of gold's price action over the past few months with analysis by crypto trader Bitcoin Jack (@BTC_JackSparrow on Twitter). Chart from TradingView.com<\/a><\/pre>\nRelated Reading:\u00a0Critical On-Chain Signal Predicts That Bitcoin\u2019s Next Move Will Be Upward<\/a><\/h6>\nFundamentals Favoring These Alternative Assets<\/strong><\/h2>\nBolstering the positive technical trends that these assets may have, there are fundamental trends that are primed to drive both Bitcoin and gold higher.<\/p>\n
Dan Tapiero, the co-founder of DTAP Capital and Gold Bullion International, recently remarked that structural deflation in Europe could drive Bitcoin higher. His thought was that this deflation will drive real rates in the European Union higher relative to other markets, thus driving the relative value of the U.S. dollar lower. As Bitcoin and gold both act as a hedge against declines in the U.S. dollar, this trend could boost these alternative assets:<\/p>\n
\u201cMassive structural deflation in Europe supports Bitcoin. Causes European Union real interest rates to geo up even as nominal rates are negative. Crushes legacy European Union banks. European Central Bank drags feet and maybe [its] hands [are] tied. Dollar falls as real rates rise faster in the European Union than in the US.\u201d<\/p><\/blockquote>\n
\nMassive structural deflation in Europe supports #Bitcoin<\/a><\/p>\nCauses Eu real interest rates to go up even as nominal rates are negative.<\/p>\n
Crushes legacy EU banks<\/p>\n
Ecb drags feet and maybe hands tied.#Dollar<\/a> falls as real rates rise faster in Eu than in US.<\/p>\nSupports gold and #btc<\/a>. pic.twitter.com\/KrpNfMIhxp<\/a><\/p>\n— Dan Tapiero (@DTAPCAP) October 3, 2020<\/a><\/p><\/blockquote>\n
Gold retaking this level would likely help Bitcoin as the two markets have been quite correlated over recent months. The analyst thinks that gold retaking the aforementioned support at $1,900 will trigger an uptrend to $2,000. The last time gold traded above $2,000, BTC was trading above $11,000 and near $12,000.<\/p>\n
Chart of gold's price action over the past few months with analysis by crypto trader Bitcoin Jack (@BTC_JackSparrow on Twitter). Chart from TradingView.com<\/a><\/pre>\nRelated Reading:\u00a0Critical On-Chain Signal Predicts That Bitcoin\u2019s Next Move Will Be Upward<\/a><\/h6>\n
Fundamentals Favoring These Alternative Assets<\/strong><\/h2>\n
Bolstering the positive technical trends that these assets may have, there are fundamental trends that are primed to drive both Bitcoin and gold higher.<\/p>\n
Dan Tapiero, the co-founder of DTAP Capital and Gold Bullion International, recently remarked that structural deflation in Europe could drive Bitcoin higher. His thought was that this deflation will drive real rates in the European Union higher relative to other markets, thus driving the relative value of the U.S. dollar lower. As Bitcoin and gold both act as a hedge against declines in the U.S. dollar, this trend could boost these alternative assets:<\/p>\n
\u201cMassive structural deflation in Europe supports Bitcoin. Causes European Union real interest rates to geo up even as nominal rates are negative. Crushes legacy European Union banks. European Central Bank drags feet and maybe [its] hands [are] tied. Dollar falls as real rates rise faster in the European Union than in the US.\u201d<\/p><\/blockquote>\n
\nMassive structural deflation in Europe supports #Bitcoin<\/a><\/p>\n
Causes Eu real interest rates to go up even as nominal rates are negative.<\/p>\n
Crushes legacy EU banks<\/p>\n
Ecb drags feet and maybe hands tied.#Dollar<\/a> falls as real rates rise faster in Eu than in US.<\/p>\n
Supports gold and #btc<\/a>. pic.twitter.com\/KrpNfMIhxp<\/a><\/p>\n
— Dan Tapiero (@DTAPCAP) October 3, 2020<\/a><\/p><\/blockquote>\n