Bitcoin Price Nears $12K Again as Gold Correlation Hits Record
$12,000 is firmly back on the cards as daily gains top 2.2% and Bitcoin erases the effect of its weekend plunge.
Bitcoin (BTC) saw fresh gains on Aug. 6 as bulls refused to rest and the price steamed toward $12,000.
Cryptocurrency market daily snapshot Aug. 6. Source: Coin360
BTC price recovers $1,200 crash losses
With barely any let-up, Bitcoin has recovered almost all its lost ground over the course of this week, just four days after it shed $1,200 in minutes after initially passing the $12,000 mark.
With its latest move, the largest cryptocurrency thus beat out resistance earmarked by analysts as the next hurdle for bulls.
â€œLet’s see how it goes from here.â€�
BTC/USD 1-day chart. Source: Coin360
All eyes will be on the ability for bulls to flip the precarious $12,000 level into solid support, something which nonetheless came easily for $11,000 once resistance at $10,500 was broken.
Bitcoin realized correlation with gold hits all-time high
Bitcoin â€œcopyingâ€� gold to hit surprise price highs now has factual evidence as the realized correlation between the two assets reaches all-time highs.
Data from on-chain monitoring resource Skew confirmed the trend this week, with one-month realized correlation between gold and Bitcoin now at 67.1%.
The transformation has been impressive â€” just three weeks ago on July 20, a local low saw realized correlation hit -0.1%.
Bitcoin Vs. Gold realized correlation 2-year chart. Source: Skew
The intervening period has been marked by Bitcoinâ€™s rapid gains in USD terms, following in goldâ€™s footsteps several months after the precious metal began its own conspicuous climb.
At press time on Thursday, XAU/USD was at $2,065, its highest ever against the dollar, passing $2,000 despite analysts predicting the likelihood of such an event being just 30% this year.
Meanwhile, doubts are surfacing over Bitcoinâ€™s continued correlation with stock markets. BTC was 95% correlated with the S&P 500, for example, but on Thursday, one analyst declared the relationship to be over.
Powered by WPeMatico