PANews reported on September 10th that QCP Capital, a Singapore-based crypto investment firm, stated that gold prices remained near their all-time high of $3,600 per ounce, supported by weak non-farm payroll (NFP) data last week. Bitcoin, often called "digital gold," continued to fluctuate in a range around $112,600. However, the Bitcoin-to-gold ratio is sending an intriguing signal. Historically, when the ratio hits resistance, gold continues its upward trend while Bitcoin bottoms out. This pattern was observed in 2015, 2020, and 2022. This time, after rebounding from support at 0.026 in August, the ratio is retesting the boundary of its ascending channel at 0.041. If history repeats itself, Bitcoin may be forming another bottom, laying the foundation for the next significant rally. The cyclical backdrop suggests that Bitcoin has room for a breakout, potentially echoing previous bull cycles. Market focus now turns to inflation data released this week, which will help determine whether gold can maintain its upward momentum. Any unexpectedly higher Consumer Price Index (CPI) or Producer Price Index (PPI) data could weaken gold's upward momentum. Seasonal factors also point to weaker data. While this trend suggests a downturn, unlike the current situation, the impact of tariffs was largely absent at that time.
Analysis: Bitcoin's Cyclical Background to Gold Ratio Shows Potential for a Breakout





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