Bitcoin May Be Poised to Surpass Gold’s Rally, According to Technical Indicators

Monero (XMR) has shown a strong shift toward bullish momentum, confirmed by a golden crossover and a breakout from a lengthy consolidation phase. This analysis is by CoinDesk’s Omkar Godbole, a Chartered Market Technician.

For the past 12 weeks, gold (XAU) has outperformed Bitcoin (BTC) in attracting bids, but technical charts suggest that trend may soon reverse.

Gold has surged by 22% this year, largely due to haven demand and arbitrage opportunities, where traders have moved physical gold to the U.S. to benefit from premiums at Comex. On the other hand, Bitcoin has dropped over 8%, contributing to a 25% decrease in the Bitcoin-to-gold ratio, which measures the USD value of Bitcoin relative to gold’s per-ounce price.

However, this downtrend was invalidated this week, with the Bitcoin-to-gold ratio breaking above the trendline from January 20 and March 3 highs. The breakout suggests that Bitcoin could soon recover, potentially catching up with gold’s impressive rally.

Technical analysis by Theya Research’s Joe Consorti indicates that Bitcoin typically lags gold by 100 to 150 days, supporting the idea of a potential reversal. The trendline breakout is further confirmed by the positive flip in the MACD histogram, indicating a shift toward bullish momentum. Additionally, the crossover between the 5-day and 10-day simple moving averages (SMA) signals a continuation of the upward trend.

Monero (XMR) Breaks Out as Golden Cross Signals Long-Term Bullish Trend

Monero (XMR) is also seeing a promising outlook after its sharp recovery from $165 to over $200 last week, leaving a long-tailed candle on the weekly chart. This candlestick suggests significant demand for the token at lower prices.

XMR has broken out of a lengthy consolidation phase, and the 50-week SMA has crossed above the 200-week SMA, confirming a golden crossover and signaling the potential for long-term bullish momentum.

Immediate resistance for Monero lies at $242, the February high, followed by $289, the April 2022 high. Support levels are located at $200 and the recent low of $165.