- Gold price renews the uptrend towards seven-year high, Michael Novogratz believes Bitcoin price rally will follow.
- Bitcoin price short term analysis shows that a return to $6,000 is necessary to create fresh demand in support of the rally to $8,000.
The price of gold is soaring once again nearing its local high at $1,637.05/Oz. As the rally of the world’s most precious metal continues, Bitcoin evangelist, Mike Novogratz, the CEO of Galaxy Digital believes that Bitcoin (BTC) is also ready to take off.
As reported by Coingape a couple of weeks ago, BTC/USD plummeted massively amid a selloff in the global markets due to fears surrounding the Coronavirus pandemic. At the time, gold dived to $1,480/Oz while stock markets in the US, Asia, and Europe took a big hit.
Bitcoin Price Primes For A Rally
Bitcoin price has spent the last couple of weeks finding balance after the disappointing plunge to levels under $4,000. There was a delay in the recovery when consolidated took precedence between $5,000 and $6,000. However, a breakout on Friday tested $7,000 resistance, making it a critical pivot point. The support at $6,000 has been tested and confirmed.
Meanwhile, BTC/USD is trading at $6,573 amid a short term building bearish momentum. The price is teetering above the moving averages, whereby the 100 SMA in the 4-hour range is in line to provide support at $6,257 and the 50 SMA at $5,982. The gap between the moving averages is narrowing with the 50 SMA likely cross above the 100 SMA. This shows that buyers have an upper hand.
BTC/USD 4-hour chart
A break is needed above the critical $7,000 to pave the way for gains towards $8,000. However, a return to $6,000 level is likely to achieve more yields by creating fresh demand for BTC at a lower price, in turn, catapulting the price above $7,000 and shifting the focus back to $8,000.
Bitcoin Key Levels
Spot rate: $6,573
Relative change: -197
Percentage change: -2.97%