A break above the $100,000 level will confirm that a bottom has formed, and prices will continue to break the record level. To keep this bullish momentum alive, Bitcoin prices must hold the $50,000 support zone.
A break below $50,000 will indicate further downside in Bitcoin prices toward the $30,000 level.
Bottom Line
The oil shock has different impacts on gold and Bitcoin. The long term fundamentals for gold remain supportive due to inflation and geopolitical uncertainty. However, rising oil prices can boost yields and the greenback, which can put short term pressure on gold. Bitcoin is gaining momentum with liquidity support and a positive BTC to gold ratio.
The formation of double bottom pattern suggests positive momentum in the Bitcoin market. But the Bitcoin must hold the $50,000 to remain bullish. So, gold may be defensive and resilient, but Bitcoin may lead the way in the next leg if the risk-on sentiment remains and the oil led pressure does not trigger a market correction. In the short term, the oil prices are surging and putting pressure on the gold market, while Bitcoin remains strong.
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