Bitcoin Fluctuates Near $78K Amid Rising Gold Correlation
Bitcoin has been trading near its recent lows, hovering just above $78K. This comes after three consecutive daily price declines and an opening dip on Thursday.
The cryptocurrency's rally may be facing resistance at the 50-week moving average, which has previously acted as both support and resistance for Bitcoin.
Historically, when the price pulls back to this level, it tends to remain there for some time before resuming its upward trend. This pattern was observed in April-May 2019 and May-July 2020, where the price fluctuated near the 50-week moving average before continuing its ascent.
Bitcoin's correlation with gold has reached a record high since 2017, according to Bitwise. The increasing similarity between the two assets may be driven by concerns over fiat currency devaluation and rising government debt.