Right on queue.
Metals smoked with double digit drops while bitcoin is flat.
Bearish sentiment for bitcoin is as bad as ever, as the BTC/gold ratio hit a major technical target and retested the 2017 high of 16.
Hilarious that goldbugs were dancing on bitcoin's grave because 1 BTC fell to the same value as one POUND of gold. They'll never admit it, but that is a massive win for bitcoin.
Gold, "the ultimate safe-haven", fell 16% intraday from yesterday's high. A bigger drop than bitcoin experienced on October 10th.
Silver fell 39% from yesterday's high. A bigger drop than the entire bitcoin "bear market" in just one day.
Remember, bitcoin had a larger market cap than silver within the last year. Now silver's market cap is 3X bitcoin's. Gold's market cap is over 20x bitcoin's.
The potential for a pure play on digital monetary utility to outrun its analog competition is obvious.
Digital successors do not merely take a portion of the old analog market. They consume it entirely, and then grow orders of magnitude beyond that. Blockbuster vs Netflix, radio vs streaming, landlines vs cell phones, newspapers vs internet news, etc. Bitcoin is that significant.
Metals are laughably clumsy and costly to transact in comparison. Friction and additional costs at every step.
I believe metals traders would be wise to trim some overweight metals positions and re-allocate to a technically superior store-of-value.
Now on to the chart. I know, you think I'm crazy. But the setup is clean and it is years in the making. We should know by the end of March if this holds water. The upside potential, while mind-bending, is supported by the technicals.
I know bitcoin is on the edge of its range here. It looks sketchy. But the range is still holding, and that is where the best risk/reward presents itself.
Bitcoin has a spectacular track record of humbling anybody who bets against it over the long term. Bitcoin is not a generational opportunity. It is a once-in-a-millennium opportunity.
It might make sense just to get some in case it catches on.
$BTC vs gold reaching the head and shoulders target of 16.
Right as the bear market reaches its typical 14 month duration.
Soon.