Bitcoin and Gold Correlation

Correlation of Bitcoin and gold on the daily time frames from December 20 to the present day.

bitcoin gold correlation
bitcoin gold correlation

In the above daily chart analysis, we are looking at the correlation between the price of Bitcoin and the price of Gold from December 1st, 2020 to the present day. We have heard that Bitcoin may be the new digital gold and may be a hedge against inflation of the dollar.

In this example, we can see that starting December 2020 prices of Bitcoin and Gold do appear to correlate in a bullish movement and then by mid-January we see both Bitcoin and Gold start to correlate in a bearish fashion with a pullback.

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By February 3rd and 4th Bitcoin gives me strong bullish buying signals, while Gold sets up for my preferred short entry setup which eliminates the correlation.

Currently, Gold to me looks like it is trying to bottom out and ready for a short-term rally while Bitcoin after its most recent pullback is looking to rally higher from here.

We will see if Gold is just making a setup for a lower high and lower low set up or will it rise with Bitcoin and start correlating again.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia