It wasn’t long ago that Bitcoin (BitfinexUSD) was pretty much left for dead. And a couple of years before that, gold was in the same position.
Both Bitcoin and gold suffered severe bear markets that saw many investors jump ship. Often times, that is the only way for a durable bottom to form.
And in each of these cases, that’s exactly what happened.
As you can see in today’s chart, Bitcoin (on the left) and gold (on the right) have produced multi-month rallies after forming bottoming bases. And each chart shows the making of a bullish cup-and-handle pattern, with the handle yet to form.
This should come as no surprise considering the environment in 2020 – COVID, protests and economic and political uncertainty. Bitcoin and gold serve as alternative investments, with Bitcoin gaining strength on government and U.S. dollar concerns and gold serving as a long-term safe haven that thrives amidst economic uncertainty.
So will investors get a pullback/consolidation that forms the “handle” of the cup-and-handle pattern? If so, that would be very bullish!