Martin D. Weiss of Weiss Ratings stated that Bitcoin shares many resemblances with gold. Considering gold has already reached its bottom and begun a new bull cycle, Bitcoin may be set to follow a similar pattern.
Martin D. Weiss explains in his latest blog how Bitcoin’s primary use case is shifting to one of store value earning it the nickname of “digital gold” and “gold 2.0.”
“Like gold, Bitcoin and other cryptocurrencies could become a haven for investors who flee from fiat currency devaluations. In fact, in one key aspect, it may be even better than gold: It cannot be confiscated by any government.”
Over the years, Bitcoin has shown similar patterns to gold, with both making sharp U-turns called “pinpoint tops.” At lows, both assets form long bottoming patterns known as “rounded bottoms.”
Gold reached its bottom last August and has since begun a new 3-year cycle, currently in the early upswing stages. Gold is expected to reach new five year highs rising past $1,400 per ounce.
“Bitcoin is not far behind. The charts tell us it’s currently still in a bear market, but improving fundamentals tell us a new bull market is in the making.”