Bitcoin – if viewed as 'digital gold' – is in an unusually cheap state compared to physical gold. And this is not just a feeling, but something that is clearly reflected in the data.
The 2-week RSI of the $BTC /gold ratio has just fallen to around 29, the lowest level ever recorded. The signals on the weekly and monthly frames are similar.
While gold is rising strongly as a traditional safe-haven asset, Bitcoin has been price-constrained for a long time, causing the valuation gap between these two 'golds' to widen.
History shows that whenever this fluctuation reaches extreme areas, the balance often reverses. Money tends to flow away from physical gold and turn to Bitcoin as an alternative safe haven. Not because of a story or belief, but because this ratio cannot stray forever from the average value.
The question at this moment is quite simple: do you want to hold an asset that is at an extremely high valuation level, or an asset that is at an extremely low valuation level compared to its counterpart?
#BTC
