Bitcoin price may have snapped back below $11,000 and is struggling to maintain the all-important support level of $10,000, however, its showing more “relative strength” than gold currently. That statement is from outspoken crypto bull Max Keiser, who in the past has predicted the leading cryptocurrency by market cap will reach prices of $400,000 or more.
Is Keiser correct, or is the Bitcoin backer simply wearing rose-colored glasses when it comes to the cryptocurrency?
Max Keiser Says Crypto Is Showing Solid “Relative Strength” Versus Gold
This year has been a wild rollercoaster ride across all markets. After an enormous drop on Black Thursday, markets have been steadily climbing higher, but have recently started to slow and chug along. What typically comes next in any form of the popular amusement park ride, would be the final shocking drop before the ride starts again.
The fall has started but most assets have taken a pause. Bitcoin is thus far holding above $10,000, while the safe haven asset it is said to share similarities with has struggled comparatively.
Both Bitcoin and gold have since pulled back significantly from local 2020 highs, but one asset is showing more “relative strength” than the other, according to Max Keiser.
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Keiser, from The Keiser Report, is a staunch Bitcoin believer and one of its most outspoken supporters. He regularly comments on his beliefs related to the cryptocurrency industry and the rest of the world of finance.
Keiser, expects Bitcoin to ultimately reach prices of $400,000 or more, but is he right about the crypto asset holding stronger in current market conditions compared to the precious metal?
— Max Keiser (@maxkeiser) September 23, 2020
Relative Strength Index Proves Bitcoin Is Beating The Precious Metal At Its Own Game
Thanks to technical analysis, Keiser’s theory can be put to the test. Keiser claims Bitcoin’s “relative strength” is good compared to gold’s, and he is right.
The Relative Strength Index is a trend strength measuring tool created by J. Welles Wilder Jr. Wilder also created several other of the most popular trading tools used today, including the Parabolic SAR, and Average Directional Index.
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The RSI, for short, can signal when an asset is oversold or overbought. According to the charts below, Bitcoin has recovered from oversold conditions far more sharply than gold has. Gold also reached significantly more overbought and oversold conditions that Bitcoin did.
BTCUSD Versus XAUUSD Relative Strength Index Comparison Chart | Source: TradingView
The leading cryptocurrency by market cap’s price action also shows consecutive higher lows, while XAUUSD has set a lower low on daily timeframes.
Charts don’t lie, and while Keiser is undeniably a Bitcoin bull through and through, he’s 100% correct about the crypto asset holding strong a lot better than gold, the original safe haven asset.
Featured image from DepositPhotos, Charts from TradingView