Peter Brandt, a senior market analyst, shared a report on the Bitcoin to Gold (BTC/GLD) ratio that suggests a possible bull run for Bitcoin in the future. He believes that Bitcoin could eventually rise to the point where each BTC is equivalent to 123 ounces of gold. Such a price would place BTC at a new all-time high for the precious metal, as the current all-time high is 37.2 ounces, achieved in November 2021.
Brandt identified an inverse head and shoulders (H&S) pattern as the primary structure in the BTC/GLD ratio. The neckline of this pattern is approximately at the 32.5 ounce level. This pattern is a bullish sign and will lead to the continuation of the uptrend once the price breaks above the neckline.
In Brandt’s chart, price has yet to fully break through this neckline. The bottom of the left shoulder of this H&S pattern is located at a ratio of 14.2. As Bitcoin recovered, it formed a flag pattern, which formed the right shoulder.
BTCGLD 1W Chart | Peter Brandt
Brandt noted that this flag pattern could lead to a short-term pullback that could send the ratio into the upper teens again, but this pullback would likely be the last significant correction before the next major rally.
Brandt's long-term target is 123 ounces. At gold’s all-time high of $2,634, this ratio would put Bitcoin’s price at around $323,000. If gold continues to rise and surpasses its all-time high of $2,634, 123 ounces would make BTC worth even more.
Bitcoin Cup and Handle Pattern Against the US Dollar
Meanwhile, in addition to the bullish outlook for gold, Bitcoin is also forming a promising pattern in comparison with the United States dollar. A similar cup-with-handle pattern also appears on the weekly Bitcoin to USD chart. The cup portion was formed after Bitcoin fell from a high of $69,000 in 2021 to a low of $15,632 in 2022 before recovering to its most recent all-time high of $73,794 in March 2024.
BTCUSD 1W Chart
The handle of the pattern is currently forming, which is Bitcoin’s pullback from its recent all-time highs. Such a price pullback is typical in a cup-with-handle pattern and usually foreshadows a breakout to new highs.
Moreover, the Directional Movement Index (DMI) supports the bullish momentum. The +DI (Positive Direction Index) is currently rising and is at 19.3, while the -DI (Negative Direction Index) is falling, indicating that the selling pressure is easing. The ADX, which measures trend strength, is currently at 23.72 and is declining. The decline in ADX suggests that the current consolidation may soon turn into a strong new trend. If +DI continues to rise and -DI continues to fall, Bitcoin may be likely to push higher again. The current trading price of BTC is $63,213.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the views of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses
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