Beware of the Bear Trap in Bitcoin (BTC)

While the global economy continues to collapse, Bitcoin and gold have been following each other for the last two years. If the correlation continues, investors may face a bear trap before the rise occurs after the last fall in Bitcoin.

The debate on whether Bitcoin can really be considered a safe haven like gold is still ongoing. The biggest reason for these discussions is that both assets have been correlated in the past. This correlation first appeared before the summit of Bitcoin in 2017. This situation increased as the trade war between China and the USA increased.

In the beginning of 2019, both beings started a bull run and experienced a serious recovery in the months ahead. Both assets experienced a retreat in mid-2019, which continued until the end of the year.

Both Bitcoin and gold started to rise due to the epidemic that began to spread from China on December 31, 2019. The panic air experienced in the markets was reflected on the stock markets, and a collapse began in all markets. The leader experienced the biggest one-day drop in crypto asset history. While all this was happening, both beings began to recover together.

Both gold and Bitcoin broke the long-term trend lines. As in the past, breaking the long-term trend of gold is considered a trap set by bears to shake investors. Similarly, this distance is seen as a high probability in Bitcoin.