Bitcoin price Nears $12K again as Gold correlation hits record
|$12,000 is firmly back on the cards as daily gains top 2.2% and Bitcoin erases the effect of its weekend plunge.
Bitcoin (BTC) saw fresh gains on Aug. 6 as bulls refused to rest and the price steamed toward $12,000.
Cryptocurrency market daily snapshot Aug. 6. Source: Coin360
BTC price recovers $1,200 crash losses
Data from Coin360 and Cointelegraph Markets showed BTC/USD tackling $11,900 on Thursday, with 24-hour gains at 2.2%.
With barely any let-up, Bitcoin has recovered almost all its lost ground over the course of this week, just four days after it shed $1,200 in minutes after initially passing the $12,000 mark.
With its latest move, the largest cryptocurrency thus beat out resistance earmarked by analysts as the next hurdle for bulls.
“Essentially new resistance hit here after breaking $11,300-11,400,” Michaël van de Poppe reported on Twitter earlier on Thursday.
Let's see how it goes from here.
BTC/USD 1-day chart. Source: Coin360
All eyes will be on the ability for bulls to flip the precarious $12,000 level into solid support, something which nonetheless came easily for $11,000 once resistance at $10,500 was broken.
Bitcoin realized correlation with gold hits all-time high
Bitcoin “copying” gold to hit surprise price highs now has factual evidence as the realized correlation between the two assets reaches all-time highs.
Data from on-chain monitoring resource Skew confirmed the trend this week, with one-month realized correlation between gold and Bitcoin now at 67.1%.
The transformation has been impressive — just three weeks ago on July 20, a local low saw realized correlation hit -0.1%.
Bitcoin Vs. Gold realized correlation 2-year chart. Source: Skew
The intervening period has been marked by Bitcoin’s rapid gains in USD terms, following in gold’s footsteps several months after the precious metal began its own conspicuous climb.
At press time on Thursday, XAU/USD was at $2,065, its highest ever against the dollar, passing $2,000 despite analysts predicting the likelihood of such an event being just 30% this year.
Meanwhile, doubts are surfacing over Bitcoin’s continued correlation with stock markets. BTC was 95% correlated with the S&P 500, for example, but on Thursday, one analyst declared the relationship to be over.
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