A new analysis from famous trader and market commentator TechDev has shown that Bitcoin might soon see $50,000 if it continues trending with gold.
In a Twitter update, the analyst compared the two assets’ recent trends, pointing out that Bitcoin could double its current price if it continues following XAU/USD.
What if #Bitcoin continues to follow Gold / DXY ? pic.twitter.com/DivzFw3TAb
— TechDev (@TechDev_52) January 26, 2023
Both assets have seen their fair share of a market uptrend this month, with Bitcoin increasing by over 39%. Gold has also seen its fair share of market uptrends, with the XAU/USD pair already 5% up this year.
Bitcoin and Gold Shows Incredible Reciprocity
The percentage uptrend this year between BTC/USD and XAU/USD might be miles apart, but the long-term striking resemblance is increasingly intense. Gold has only managed a 5% increment this year.
However, the charts seem similar, with TechDev noting that Bitcoin follows gold’s trend path. In his Twitter update featuring a chart of gold against the U.S. dollar compared to bitcoin, the famous analyst hinted that the most valuable cryptocurrency is following the XAU/USD on its recovery path.
TechDev previously tweeted suggesting that gold was four years ahead of bitcoin. “Outside of momentary reactions to geopolitical events… You think gold has been leading Bitcoin for 4 years?” he tweeted. “Both assets’ inverse correlation to the dollar is without question,” he added in the tweet thread.
Bitcoin Tipped to Repeat Gold’s Recovery
If TechDev’s prediction is correct, Bitcoin will likely surpass $50,000 in price. The asset has repeatedly tried to break the $23,400 resistance but has been rejected on each occasion.
The asset’s gold comparison might see it shrug off the dip from its all-time high of $69,000. Bitcoin, however, would have to make amends for the ill fortune of last year to get anywhere near those price levels.
The crypto market suffered several setbacks last year. Top players in the industry, like FTX, Terra and Three Arrows Capital, had their fair share of misfortunes that saw them either file for bankruptcy or lose a considerable amount of their asset values. Bitcoin is tipped to rebound well and end the long, harsh crypto winter soon.
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