Money rotating from cryptos to precious metals gold and silver
With rising inflation the price of anything is not likely to go down, especially inflation hedges like cryptos or precious metals. The question for the savvy investor, though, is which will increase faster by percentage? To help navigate this, I created this custom Precious Metals to Cryptos chart, with gold and silver representing PMs at their respective rations, and likewise with Bitcoin BTC and Ethereum ETH.
As you can see we are in a falling wedge here. Usually such formations break to the upside (bullish for PMs), however it may be a bit soon for such a break (bullish for cryptos). I almost posted yesterday before this huge spike up because it was looking like the beginnings of a bottoming formation (bullish for PMs). However the price ratio failed to break the downward momentum (bullish for cryptos?).
Obviously things have been great for cryptos for a long time. It could continue, but past performance doesn't predict future results. If they did, then cryptos never would have outperformed gold in the first place. So when this all will change is anyone's guess. What I see however is the beginnings of a small but significant reverse head-and-sholders (bullish for metals). This is on top of my other charts pointing toward Q1 2022 looking very bullish for PMs. However there is some time to kill before Q1, so it could be worth it to stay more in cryptos in the meantime.
Of course, cryptos and sell off quick, sometimes before you're ready.
Do not come to the elves for counsel, for they will say both yes and no. That's me.
And what I do, is trade between metals and cryptos directly with the Kinesis platform so I never get caught holding the wrong kind of bag. Check it out here: kms.kinesis.money/signup?referrer=KM13494472
Good luck out there, this is not financial advice, but stay safe (perhaps by diversifying) ;)
As you can see we are in a falling wedge here. Usually such formations break to the upside (bullish for PMs), however it may be a bit soon for such a break (bullish for cryptos). I almost posted yesterday before this huge spike up because it was looking like the beginnings of a bottoming formation (bullish for PMs). However the price ratio failed to break the downward momentum (bullish for cryptos?).
Obviously things have been great for cryptos for a long time. It could continue, but past performance doesn't predict future results. If they did, then cryptos never would have outperformed gold in the first place. So when this all will change is anyone's guess. What I see however is the beginnings of a small but significant reverse head-and-sholders (bullish for metals). This is on top of my other charts pointing toward Q1 2022 looking very bullish for PMs. However there is some time to kill before Q1, so it could be worth it to stay more in cryptos in the meantime.
Of course, cryptos and sell off quick, sometimes before you're ready.
Do not come to the elves for counsel, for they will say both yes and no. That's me.
And what I do, is trade between metals and cryptos directly with the Kinesis platform so I never get caught holding the wrong kind of bag. Check it out here: kms.kinesis.money/signup?referrer=KM13494472
Good luck out there, this is not financial advice, but stay safe (perhaps by diversifying) ;)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.