These shadows highlight positive action in Bitcoin in the short term. This positive action triggered a rally towards $64,700. But the rally was limited as Bitcoin prices continued to drop after the $64,700 level. A break above $64,700 may push Bitcoin back to $67,200. If prices break above $67,200, it will likely push Bitcoin towards $75,000. But if Bitcoin fails to break above $64,700, it may face further pressure in the short term.
Gold vs Bitcoin: Which Asset Looks Better Now?
It is interesting to note that gold prices also rebounded from the long-term support of $3,950 as Bitcoin prices also rebounded from $58,000. But gold prices also remain under pressure due to the oil spike and the expectations of Fed rate hikes. The market is now waiting for the FOMC minutes which may further drive the next move in precious metals. But the overall short term direction for gold and Bitcoin remains uncertain.
The Bitcoin-to-gold ratio shows that Bitcoin prices are forming strong support around current levels as the ratio rebounds from extremely oversold levels. This rebound may introduce support in the Bitcoin market and push prices higher. But a break below the 13 level in the Bitcoin-to-gold ratio will likely push the ratio towards the 9 area. If this scenario unfolds, then Bitcoin will likely drop further below $50,000.
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