The BTC/GLD Ratio on the Rise

Bitcoin analyst Peter Brandt today noted that the BTC/GLD ratio, a value measure of Bitcoin versus gold, has increased. He also said that this measure is increasingly becoming a key comparison metric.

Today, 29.1 ounces of gold are worth more or less the equivalent to one BTC or $68,000, Brandt added.

However, Brandt believes Bitcoin will substantially appreciate against gold shortly, causing this ratio to appreciate further.

Historical Trends and Analysis

In his analysis, Peter Brandt reviewed historical trends. Since Bitcoin's launch, it has steadily gained ground against gold. The attached chart reveals how the ratio has evolved, highlighting periods of rapid growth interspersed with corrections. Since 2011, BTC has earned an astounding 375,383% against gold.

Despite this impressive performance, Peter Brandt believes the firstborn cryptocurrency still has room for growth.

Brandt supports his forecast with technical tools, including moving averages and the Relative Strength Index (RSI) on the weekly BTC/GLD chart.

Technical Indicators Show Bullish Momentum

The analyst uses the 18-week- and 28-week moving averages to identify trends.

The BTC/GLD ratio is hovering above these moving averages, which currently sit at the 28 oz mark, indicating a prevalence of bullish momentum for Bitcoin.

In addition, the weekly RSI confirms growing strength for BTC against gold, currently hovering around the upper boundary of the 61 threshold.

This position suggests that Bitcoin is gradually tilting toward overbought territories, with a push above 70 indicating an imminent reversal to the downside.

Future Predictions and Consolidation Period

However, Brandt anticipates that the BTC/GLD ratio will stabilize within the current range for another 12 to 18 months. This period of consolidation is standard after significant price movements as the market digests gains and prepares for the next phase.

Post-consolidation, Brandt predicts a strong upward movement to the point where one Bitcoin could be worth 100 ounces of gold, implying a BTC price of $234,400 or a 243% increase from BTC's current price.

Current Market Conditions

Brandt has always believed that Bitcoin would continue to outperform gold. BTC is already up 42% against gold this year, securing four monthly gains out of five.

BTC initially hit a peak of 34.08 oz in March amid its surge to the new ATH above $73,000. However, it witnessed a correction in April, leading to a 16.51% decline.

On April 2, while BTC traded at 28.9 ounces of gold, Brandt noted that Bitcoin would remain king over gold in the longer timeframe.

Interestingly, the analyst's declaration came up when Bitcoin had relinquished the 30 oz level, dropping by 7.39% that day. The BTC/GLD metric has ranged since then.

BTC trades for $68,333 at press time, up a mild 0.65% over the last 24 hours. Meanwhile, an ounce of gold changes hands at $2,344, trading flat the past day. This brings the BTC/GLD ratio to 29.1, marking a slight uptick today.