As the rate cut approaches, gold rises, but Bitcoin falls?
This year, speculation began early that there would be a rate cut at the beginning of the year, at the end of the year, and now in September, there is a high probability of a rate cut. Therefore, when the expectation of a rate cut is confirmed, or even a rate cut is really implemented in September. It is not certain that there will be a short-term bearish market with favorable landing opportunities.
Since the Bitcoin halving on April 20, the price of Bitcoin at $64,880 has been consolidating in a wide range of $58,000 to $72,000. However, according to technical chart patterns and various indicators, the price of Bitcoin may be about to break through. The key question that remains is what influences Bitcoin and when will it break through the consolidation?
The impact of gold on the crypto bull market
Specifically, the bull market of Bitcoin in 2013 coincided with the bear market of gold that year. The same situation also occurred in 2017, when the rise of Bitcoin coincided with the bear market of gold, and this process was repeated in 2021, revealing the inverse relationship between the rise of Bitcoin and the fall of gold.
The time from the gold bear market to the next major market fluctuation is 196 weeks and 213 weeks respectively, reflecting the pattern of the time of market changes.
Since the last gold bear market peaked in August 2020, a full 208 weeks have passed. When looking at the past period of time, people think that the market is getting closer to more critical levels, which indicates that major changes may occur in the future.
Accordingly, the upcoming gold bear market may bring about a Bitcoin bull market.
The Bitcoin bull market began with the gold bear market, and there is little time left for major changes and Bitcoin bull markets. From the past to the present, people have been comparing gold and Bitcoin for value preservation. The general view of Bitcoin advocates is that the cryptocurrency will replace precious metals and earn the title of "digital gold".
As of today, the price of gold has risen above $2,400 and continued its upward momentum. Gold has particularly appreciated due to geopolitical tensions between Israel and Lebanon in the Middle East.
