If we can believe popular analyst Benjamin Cowen, the gold price points to an upcoming Bitcoin correction. Well, we largely saw that correction last night (hopefully) because Bitcoin fell to $58,400. The Bitcoin price has now rebounded to approximately $61,000.
Gold predicts a fall in the price of Bitcoin?
According to Cowen, Bitcoin ended its rally after gold prices broke out to new highs. He sees that happening again right now.
“Gold also broke out in 2019. Now people will probably say that this time it will be different, but I wonder.
Maybe so. I know a lot of people I respect are predicting higher prices for Bitcoin and it is possible that we will see that. I’m not going to sit here and rule that out completely, but I would simply point to the point in 2019 where gold broke out and Bitcoin started to correct,” Cowen said.
That in itself is cool of Cowen, but there is no good substantiation. The problem with Bitcoin at the moment seems to mainly lie in the selling pressure from the miners, while the rest of the financial market was also in trouble yesterday.
For example, Nvidia ended yesterday down almost 7%. It could also be that the tech rally is on pause.
Bitcoin has fallen since Cowen’s prediction
Since Benjamin Cowen’s price prediction, the Bitcoin price has fallen considerably. As you can see in the image above, Cowen made his prediction when the Bitcoin price came in at $66,200.
We have already fallen sharply since then and he seems to be right. Although there does not really seem to be a breakout in the gold price yet.
Almost all risk assets have struggled in recent days. Of the Big Seven stocks, only Apple and Meta finished in the green yesterday.
Tesla, Amazon, Google, Microsoft and Nvidia all plunged.
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Source: https://newsbit.nl/goudkoers-wijst-op-aanstaande-bitcoin-correctie/
