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Bitcoin price is again approaching $ 12,000 and the correlation with gold is at its maximum level

August 6, 2020

Bitcoin (BTC) made new gains on Aug 6 as the bulls refused to rest and the price rose towards $ 12,000.

Daily snapshot of the cryptocurrency market August 6th

Cryptocurrency market development for August 6th. Source: Coin360

The BTC price makes up for lost USD 1,200

Bitcoin price is again approaching $ 12,000 and the correlation with gold is at its maximum levelBitcoin price is again approaching $ 12,000 and the correlation with gold is at its maximum level

The data from Coin360 and Cointelegraph Markets showed the BTC / USD pair faced $ 11,900 on Thursday, with increases of 2.2% in 24 hours.

With just a little rest Bitcoin regained most of the ground lost during the week, just four days after losing $ 1,200 in minutes after initially breaking the $ 12,000 mark.

With his last move The major cryptocurrency overcame the resistance that analysts identified as the next hurdle for bulls.

“After the $ 11,300 to $ 11,400 slump, this was essentially a new resistance,” reported Michaël van de Poppe Twitter early thursday.

“Let’s see how it goes from here.”

BTC / USD 1-day chart

Daily chart of the BTC / USD pair. Source: Coin360

All eyes will be on the cops’ ability to turn fragile $ 12,000 levels into solid supportHowever, this was easy to achieve after breaking the resistance at $ 10,500.

Bitcoin achieves a correlation with gold, which is reaching its maximum level

Bitcoin’s “copy” of gold to hit surprising price spikes now has objective evidence as the correlation observed between the two assets hits all-time highs.

Data from the chain monitoring resource Aslant, confirmed the trend this week, with a month-long correlation between gold and bitcoin, now at 67.1%.

The transformation was impressive: only three weeks ago, on July 20, a local low reached the realized correlation -0.1%.

Bitcoin versus gold realized correlation 2-year chart

Observed correlation between Bitcoin and gold over 2 years. Source: Skew

The interim was marked by Bitcoin’s rapid USD gains, following in gold’s footsteps a few months after the precious metal began.

At the end of the Thursday edition, The XAU / USD pair was trading at $ 2,065, its highest level against the dollar, over $ 2,000, although analysts had predicted the probability of it being just 30% this year.

Meanwhile, Questions arise about the continued correlation of Bitcoin with the stock markets. BTC was 95% correlated with the SP 500, but on Thursday an analyst said that relationship had ended.

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