Gold 'breaking down' against Bitcoin is highly bullish for BTC

Earlier this week, Bitcoin advocate and Real Vision CEO Raoul Pal said gold is breaking down against BTC. If the dominant cryptocurrency continues to gain momentum against BTC, it could strengthen its perception as a store of value.

In the past month, the price of Bitcoin gained 30.36% against the U.S. dollar, from $10,136 to $13,217.

In the past two weeks, while the price of Bitcoin rallied strongly, both gold and the U.S. stock market steadily recovered.

The confluence of three major factors likely contributed to the upsurge of Bitcoin since early October.

Particularly, after its breakout above $12,000, the volume of Bitcoin across the spot, institutional, and derivatives market spiked.

As Cointelegraph reported, when Bitcoin surged past the $12,000 resistance level, it marked a clean breakout on the weekly chart.

The strong technical momentum of Bitcoin and its decoupling from gold and stocks are also possibly furthering the intensity of BTC's current rally.

In the short term, cryptocurrency technical analysts say that Bitcoin faces an identity crisis, but fortunately in a good way.

Cantering Clark, a Bitcoin and derivatives trader, said gold is under pressure when the dollar goes up.

As the momentum of Bitcoin continues to gain against gold and stocks, prominent billionaire investors are voicing their support for BTC. Paul Tudor Jones, the Wall Street billionaire investor who purchased Bitcoin in May, reaffirmed his positive stance around Bitcoin.