Bitcoin (BTC) has had an inverse correlation with Gold for the most part but in the past few weeks we saw different. BTC/USD profited off a rally in Gold and it was made to appear that trade war concerns with China is pushing the Chinese to buy Bitcoin (BTC). A lot of people bought that narrative which was nothing more than orchestrated ploy to prop up the price of Bitcoin (BTC) short term and provide an alibi for the naked manipulated that saw a lot of retail bears end up as cannon fodder. Gold has begun its climb and is expected to perform very well as tensions with China and Iran is unlikely to subside anytime soon. The Huawei move has made Wall Street very concerned as they expect retribution from China which could hurt the tech sector further.
In times like these investors look to one asset that they have been looking at for thousands of years and that is Gold. Bitcoin (BTC) is not digital gold simply because it is not a safe asset, at least for now. People buy Gold as a hedge against the stock market or other vulnerable markets in a time of crisis. Bitcoin (BTC) experiences wild swings during that time and is marred by shameless manipulation that knows no bounds. To make things worse for its case as digital gold, the majority of its supply is concentrated in a few powerful hands that get to choose what to do with the price. A lot of these ‘experts’ and ‘gurus’ out there love to make Bitcoin (BTC) predictions but here is the thing. The people that tell don’t know and the people that know don’t tell. Most of these big players know perfectly well what is going on and sometimes they make false predictions to throw retail traders a bone.
Bitcoin (BTC) finally seems to have reacted to the recent VanEck ETF decision delay but we are yet to see significant sell off from current levels. Retail traders are still mostly bullish expecting BTC/USD to rocket straight to the moon. The vast majority of traders are expecting a rally to $10,000 before the next decline which is why it is very likely that it may not happen. The name of the game here is to trap in as many bulls as possible now that the whales are done hunting bears.
Retail bulls might throw in the towel if the price breaks below the descending triangle and enters free fall mode. However, before that happens the bulls remain in charge and could push for a final move to the upside before the next bear trend begins. As stated before, we do not believe the bear market is over just yet. Technical indicators on the daily and weekly chart show that this phase of the ongoing market cycle is very different from the 2015 part of the last cycle that everyone and their mother is expecting BTC/USD to follow.