Bitcoin price rally at risk as gold and US dollar show signs of recovery
Analysts warn that a recovery in gold and the U.S. dollar index could negatively impact Bitcoin’s bullish momentum.
Dan Tapiero, the co-founder of 10T Holdings, said weak hands have been shaken out in the gold market. This raises the probability of a gold rally in the near term, especially as it comes off of an 80-day pullback period.
Bitcoin has seen strong momentum in the past three months, as it achieved an all-time high on Coinbase and a number of other major exchanges.
Despite this, the threat of a correction for Bitcoin is a real possibility if gold begins to rebound in tandem with the U.S. dollar.
Some might consider the recovery of gold a positive factor for Bitcoin in the medium term. Since more investors are starting to acknowledge BTC as a store of value, the uptrend of gold could benefit the cryptocurrency.
Still, there is a stronger case to be made that the rally of Bitcoin coincided with large gold outflows, as Cointelegraph reported. That means a major gold rally could impact the near-term momentum of BTC.
Read more here (https://cointelegraph.com/news/bitcoin-price-rally-at-risk-as-gold-and-us-dollar-show-signs-of-recovery)