Bitcoin (BTC) may reverse its trend against gold (XAU) following a recent breakout above trendlines, with indications it could catch up to gold’s gains. Meanwhile, Monero (XMR) has achieved a ‘golden cross’, indicating a long-term bullish trend after breaking strong resistance levels. Positive market indicators support an optimistic outlook for both cryptocurrencies.
Recently, technical analysis suggests a potential reversal in the cryptocurrency market dynamics, with Bitcoin (BTC) poised to gain on gold following a trendline breakout. For the past 12 weeks, gold (XAU) has outperformed BTC, climbing 22% due to haven bids and arbitrage opportunities that prompted traders to transfer physical gold to the U.S. However, Bitcoin has seen a decline of over 8%, resulting in a significant drop in the bitcoin-gold price ratio.
The recent weeks marked a pivotal change as Bitcoin’s downward trend has been invalidated, with its price breaking above key trendlines previously drawn from January and March highs. This bullish breakout signals that BTC could potentially catch up with gold’s recent successes. Additionally, analysis from Theya Research indicates that Bitcoin generally tends to lag behind gold by 100 to 150 days, supporting this bullish sentiment.
Supporting the bullish outlook, the MACD’s histogram flipped positively, indicating a shift in momentum towards the upside. Furthermore, the crossover of the 5- and 10-day simple moving averages (SMA) aligns with this trend, suggesting that Bitcoin’s near future could be promising.
On the other hand, Monero (XMR) showcased a strong bullish move, recovering sharply from a price of $165 to over $200, forming a long-tailed candle that signifies robust buying interest. This upward movement has confirmed a golden crossover, with the 50-week SMA rising above the 200-week SMA, which represents a long-term bullish shift. Current resistance is observed at $242 and $289, while support levels are identified at both $200 and last week’s low of $165.
