Cryptocurrency analyst Colin Talks Crypto has shared a noteworthy assessment of Bitcoin’s (BTC) current price movements.
According to the analyst, while gold is closing the gap with the global money supply (Global M2), Bitcoin has not yet followed suit, but looking at past examples, it appears that BTC usually follows gold with a lag.
Analyst's Outlook on Bitcoin and Gold
“There will soon be a period where gold and Global M2 overlap, suggesting that Bitcoin could make a strong catch-up move.”
Colin made the following statement, outlining four main reasons supporting this view:
- •Gold has narrowed the gap with Global M2.
- •Bitcoin typically lags behind gold's gains.
- •The BTC/Gold chart appears set for an upside breakout.
- •A one-month “overlap period” is approaching, where gold and Global M2 rise simultaneously, increasing the likelihood of Bitcoin experiencing similar momentum.
Projected Timeline for Bitcoin's Rally
Colin Talks Crypto argued that Bitcoin could outperform gold in the coming weeks, claiming that the possible rise could begin as early as the first week of November.
“I think Bitcoin could start its steepest rally around November 8th. This move could last 1-2 months. Of course, timing is always the hardest part, so it's worth leaving some room.”
The analyst also reminded that he does not expect Bitcoin to completely align with Global M2, as in past cycles this correlation has always been broken during peak periods.
This analysis is not investment advice.