Bitcoin Breaks Out in a Big Way as Anti-Dollar Flows Shift from Gold

BTC/USD Talking Points:

• The $65k level was hard resistance that gave bulls difficulty over a few different tests, but that’s now in the rearview following a massive breakout on the back of increased Treasury buybacks.
• I had written about this on Monday, highlighting the bullish structure in Bitcoin as a higher-low support hold led to another push towards that $65k level. Now buyers are in the driver’s seat as BTC/USD is approaching its strongest weekly outing since last September before the 125k top was set.

While much of the world likes to equate Bitcoin and Gold as being anti-dollar competitors, the reality is timing in the two markets is often quite different. I highlighted this on Monday, how there’s been a tendency for gold to lead the way higher and then for Bitcoin to take over on more than one occasion. This was a big part of the Covid boom in the summer of 2020, when Gold found resistance at $2k in August of that year and, at the time, Bitcoin was vying to get back above the $12k marker. Of course, Gold then ranged for three-plus years as BTC/USD went through multiple cycles, eventually setting a high at $69k.

Another episode appeared around the second election win of Donald Trump, who courted the crypto crowd quite clearly ahead of his November win. About a week before that, with Trump ahead in the polls, Gold prices calmed and pulled back after a near 40% run in the prior seven months. Bitcoin then got bullish in a very big way and once again, as Gold prices calmed BTC/USD went vertical.