Technical Analysis Suggests Bitcoin Could Outpace Gold’s Surge in the Coming Days

Monero (XMR) has demonstrated a clear bullish shift, marked by a golden crossover and a breakout from a prolonged consolidation phase. This analysis comes from CoinDesk’s Omkar Godbole, a Chartered Market Technician.

Over the past 12 weeks, gold (XAU) has significantly outperformed Bitcoin (BTC), attracting more investor interest. However, technical indicators suggest that this trend could soon reverse.

Gold has gained 22% this year, fueled by haven bids and arbitrage moves that involve traders moving physical gold to the U.S. to capitalize on price premiums in the Comex market. On the other hand, Bitcoin has dropped over 8%, leading to a 25% decline in the Bitcoin-to-gold ratio, which tracks Bitcoin’s price relative to the price of gold.

This downtrend was broken this week, as the Bitcoin-to-gold ratio surpassed critical trendlines from the January 20 and March 3 highs, marking a bullish breakout. This suggests that Bitcoin could soon catch up to the rally seen in gold.

The reversal is also in line with analysis from Joe Consorti at Theya Research, who notes that Bitcoin tends to lag gold by 100 to 150 days. In addition to the trendline breakout, the positive shift in the MACD histogram and the bullish crossover of the 5-day and 10-day simple moving averages (SMA) indicate that Bitcoin may be gearing up for a rally.

Monero’s Golden Cross Marks Long-Term Bullish Potential

Monero (XMR) is also showing signs of strength, with a strong recovery from $165 to over $200 last week. This price action, accompanied by a long-tailed candle on the weekly chart, suggests robust demand for the token at lower levels.

The breakout from a consolidation pattern is further confirmed by the 50-week simple moving average (SMA) crossing above the 200-week SMA, a golden crossover that signals long-term bullish momentum.

For Monero, the immediate resistance is at $242 (February high), followed by $289 (April 2022 high). Support is seen at $200 and the recent low of $165.