Silver's Surge May Mark End of Bitcoin's Outperformance Era

Silver has surged this month from below $60 per ounce to over $66, but it's now trading around $64. Analyst Northstar warns that Bitcoin's outperformance era may be coming to an end.

The silver/Bitcoin ratio (XAGUSD divided by BTCUSD) on a monthly timeframe shows the long-term trend has overwhelmingly favored Bitcoin since 2011. However, since the end of 2017, Bitcoin has not outperformed silver.

Northstar notes that the current setup is significant due to its monthly timeframe and convergence of multiple technical barriers. The ratio is approaching a decisive level near the 0.0015-0.0020 region of the XAG/BTC ratio, where a sustained move through this zone would be more meaningful than a brief intramonth spike.

A break of the upper descending black trendline, which represents long-term resistance, would mean silver has achieved something it has been unable to do for most of the post-2017 period. Confirmation should ideally happen on the monthly timeframe with a strong signal involving a monthly close above the descending black resistance and follow-through in subsequent months.