Crypto Analyst Warns: Gold's Surge May Signal Imminent Correction for Bitcoin

Popular crypto analyst Benjamin Cowen suggests gold's recent surge could signal the peak of Bitcoin's bullish momentum. Cowen believes gold's strong performance in 2019 and 2022 coincided with Bitcoin's local tops and may foreshadow a correction for the leading cryptocurrency. The analyst also points to the recent breakdown of Ethereum against Bitcoin as another potential indicator of a Bitcoin top.

Crypto Analyst Suggests Gold's Recent Surge May Foretell Bitcoin's Imminent Correction

Amid the recent surge in Bitcoin's (BTC) value, a prominent crypto analyst, Benjamin Cowen, has presented a compelling analysis suggesting that the rise in gold prices may have signaled a potential peak in Bitcoin's current rally.

In an informative video update shared with his substantial YouTube audience of over 800,000 subscribers, Cowen meticulously examined historical data and identified a correlation between gold's performance and Bitcoin's subsequent price movements.

"We observed that in 2019, a significant breakout in gold prices coincided with the local peak in Bitcoin's value. Although Bitcoin experienced a brief upturn a year later, it is noteworthy that gold's resurgence in March this year mirrored a similar occurrence when Bitcoin/USD attained its local peak," stated Cowen.

Cowen further elucidated that should gold continue to perform well, it could indicate that Bitcoin may face an extended period of correction after its present period of consolidation below the 8-week moving average, unlike the sudden surge it experienced last year.

Additionally, Cowen highlighted the breakdown of Ethereum (ETH) relative to BTC (ETH/BTC) as another indicator of potential Bitcoin peaks, a trend he suggested has already commenced.

"Historical data reveals that when ETH/BTC began to decline in the previous cycle, it signaled an impending peak in BTC/USD before a substantial correction. We are witnessing a similar pattern emerging this year," said Cowen.

At the time of writing, ETH/BTC traded at 0.05143 ($3,258).

Cowen went on to elaborate that a further indication of a Bitcoin peak would be a sell-off in altcoins relative to BTC. However, he noted that this trend has not yet materialized in the current market.

"During the previous cycle, when altcoins declined against Bitcoin, it marked the local peak for Bitcoin. Despite Bitcoin experiencing notable rallies as altcoins depreciated, this has not occurred in the present market. Altcoins briefly dipped below their previous levels but have not sustained weekly closures below them," explained Cowen.

Based on his analysis, Cowen predicted that Bitcoin would likely fluctuate between $66,000 and $56,000 in the coming weeks and spend a significant amount of time between the 8-week SMA and the bull market support band.

Bitcoin was trading at $63,386 at the time of writing, representing a 1.2% decline over the past 24 hours. Notably, it had been hovering around $44,000 at the beginning of 2024.

It is crucial to emphasize that the views expressed by Cowen are based on his own analysis and interpretation of market data. Investors are strongly advised to conduct their own thorough research and exercise discretion before making any investment decisions.