The BTC/GOLD ratio has experienced a significant correction, currently standing at 27 gold ounces per 1 Bitcoin, down from a peak of 41, representing a decline of 34%.
Gold, priced at $3,114 in US Federal Reserve notes, is in a sustained bull market.
It is reasonable to anticipate that the digital equivalent of gold will gain traction once gold stabilizes at a higher price point.
The Gartley pattern is recognized as the most prevalent harmonic chart pattern.
Harmonic patterns are based on the idea that Fibonacci sequences can be utilized to create geometric formations, which include price breakouts and retracements.
The Gartley pattern illustrated indicates an upward movement from point X to point A, followed by a price reversal at point A. According to Fibonacci ratios, the retracement from point X to point B is expected to be 61.8%.
At point B, the price reverses again towards point C, which should reflect a retracement of either 38.2% or 88.6% from point A.
From point C, the price then reverses to point D. At point D, the pattern is considered complete, generating buy signals with an upside target that aligns with points C and A, as well as a final price target of a 161.8% increase from point A.
Often, point 0 serves as a stop-loss level for the entire trade. While these Fibonacci levels do not have to be precise, greater proximity enhances the reliability of the pattern.
Will these consecutive Gartley patterns succeed in bolstering Bitcoin's strength? We will soon discover the answer.
Gold, priced at $3,114 in US Federal Reserve notes, is in a sustained bull market.
It is reasonable to anticipate that the digital equivalent of gold will gain traction once gold stabilizes at a higher price point.
The Gartley pattern is recognized as the most prevalent harmonic chart pattern.
Harmonic patterns are based on the idea that Fibonacci sequences can be utilized to create geometric formations, which include price breakouts and retracements.
The Gartley pattern illustrated indicates an upward movement from point X to point A, followed by a price reversal at point A. According to Fibonacci ratios, the retracement from point X to point B is expected to be 61.8%.
At point B, the price reverses again towards point C, which should reflect a retracement of either 38.2% or 88.6% from point A.
From point C, the price then reverses to point D. At point D, the pattern is considered complete, generating buy signals with an upside target that aligns with points C and A, as well as a final price target of a 161.8% increase from point A.
Often, point 0 serves as a stop-loss level for the entire trade. While these Fibonacci levels do not have to be precise, greater proximity enhances the reliability of the pattern.
Will these consecutive Gartley patterns succeed in bolstering Bitcoin's strength? We will soon discover the answer.
Note
#BTC v #GOLD ratio has made a nice reversal as we thought it would. Trade closed: target reached
#BTC buys alot more #GOLD since this idea was shared.
We will keep monitoring this ratio going forward, but probably in another idea share.
The 1.618 extension still can be a longer term objective.
Note
Don't forget the big pattern for #BTC/#GC
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.