Besides being healthy for the Bitcoin price after an 85% uptrend in less than two months and mirroring the 2017 bull market when there had been an average of 30% pullbacks, another decline in BTC price means it is acting just like gold.
The crypto market has long been pointing how Bitcoin is the digital gold not only because it is now the hedge against inflation and in limited supply, but because the price of the digital asset also follows the same trajectory as the precious metal.
This has been pointed out by legendary investor Paul Tudor Jones in May when he announced that he had become a Bitcoiner and Tom Fitzpatrick, the Managing Director of Citibank, in his call for $300k per Bitcoin.
And this is why this is all bullish dumping.
“Any continued dump in BTC would be extremely bullish as it would reveal we are following the gold fractal from the 1970s, as per below by Paul Tudor Jones–the legendary macro investor who successfully used fractals to predict the 1980s stock market supercycle,” said Su Zu, chief executive officer of Three Arrows Capital.
From Paul Tudor Jones pic.twitter.com/dGnN6uT7Wx
— zerohedge (@zerohedge) November 27, 2020
But Bitcoin wasn’t the only one; bullion has been falling for months now, going to $1,774 today — down 13.5% from its ATH in August. BTC, which climbed to $19,500 on Wednesday, is currently down 17% from its record high.
Even the greenback has gone down to 91.75, touching a three-month low and closing its lowest since April 2018.
“Over the longer term, this is probably the right trend for the dollar. We think the dollar has further room to the downside,” said Bipan Rai, North America head of foreign exchange strategy at CIBC Capital Markets.
Coming back to Bitcoin, it is trading above $17,150, as of writing, up over 1% with $2.59 billion in volume.
But of course, the pain is not over, and we can decline as much as to $13,500. The market, however, is uncovered and busy buying the dips.