The gold standard is still Bitcoin (BTC), both figuratively and, as some analysts predict, eventually also literally. Will BTC reach 98X the price of gold, recently posed by the co-founder of Glassnode and prominent analyst?
A substantial increase in the BTC-gold ratio, a statistic that compares the price of bitcoin to the price of gold, seems imminent. Important signs back up this optimistic outlook. Indicating probable positive momentum, the RSI (Relative Strength Index) is not only rising but has also crossed the 50 level. Furthermore, the MACD (Moving Average Convergence Divergence) has crossed over in a bullish direction and is still moving upward.
The analyst projects probable extension levels that may see gold priced about $1,200 and Bitcoin rise to almost $120K using Fibonacci extensions. These forecasts coincide with those provided by Henrik Zeberg.
At the time of writing, the price of one bitcoin is around $27,715.40. Although this is far lower than the expected $120K, the market dynamics at the moment and the aforementioned technical signs indicate that such a spike is not completely improbable.
But it’s important to treat these forecasts with some scepticism. Technical indicators are useful for providing insights, but they are not infallible. The cryptocurrency market is infamously unpredictable, affected by a wide range of variables including legislative changes, technical developments, macroeconomic issues, and even tweets from well-known figures.
Intriguing is also the connection to gold, a material object that has been used as a store of value for millennia. Supply and demand dynamics, geopolitical unrest, inflation rates, and central bank policies are a few of the variables that affect the price of gold. On the other hand, Bitcoin uses a decentralised, barely ten-year-old technology and is a digital asset.
