BTC/USD, XAU/USD (Gold): Technical Outlook, Edition #10 (02/06/21)

Pull back on XAU/USD - what does that mean for BTC/USD? Find out in today's discussion

Not much has changed for Bitcoin in the last 24 hours - as it remains consolidating inside a symmetrical triangle-like pennant, currently at 80% completion.

A notable development to consider, Gold has finally initiated a pull back from the bottom end of USD 1900 (per oz.) after the USD 1680 double bottom saw a 15% upside push. If XAU/USD (Gold) continues correcting, this bodes well for the Bitcoin bulls, who may receive their relief rally up to USD 46K. 

Assuming that Gold spends the subsequent few sessions selling off after many consecutive green days, Bitcoin should rally if the inverse relationship hypothesis is correct. 

Mapped below are these expectations attempting to demonstrate the relationship. 

Conversely, Gold prices may rally... and rally hard if the bears get squeezed. 

This rebound to the upside could be as far as USD 1950 oz and Bitcoin down to USD 30K BTC/USD: H4 seen breaking up to USD 46K

XAU/USD: H4 depicted pulling back down to USD 1850 

See you again for the next update.

- q

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