- Mike Novogratz from Galaxy Digital says it is safer to buy gold at this stage.
- Bitcoin has the potential to outperform gold in the long run.
- The short-term technical picture implies more consolidation.
Bitcoin (BTC) tested $9,475 on Wednesday, June 8, but failed to hold the ground and retreated to $9,350 by press time. The first digital coin has gained 1.5% in the recent 24 hours; however, the upside momentum remains weak as the speculators are demotivated by the lack of the follow-through after a move above $9,300. The short-term trend is heavily bearish, while the volatility is expanding.
Bitcoin is cool, but buy gold anyway
The CEO of Galaxy Digital and a prominent cryptocurrency supporter Mike Novogratz believes that investors should buy more gold and less Bitcoins, because the digital coin is still immature and much more volatile than gold.
Speaking on CNBC’s Fast Money, he said:
My sense is that Bitcoin way outperforms it, but I would tell people to have way less Bitcoin than gold just because of the volatility.
Eventually, Bitcoin will continue to outstrip gold, but now it is safer to allocate a bigger portion of the portfolio to gold. He noted that Bitcoin is still hard to obtain, which slows down the adoption; however, this issue is something that people are working on.
There is more and more people working on making it easier to buy. Funds being setup, custody being done. At one point, we will get an ETF.
BTC/USD: Technical picture
On the intraday chart, the initial support for BTC/USD is created by 1-hour SMA50 at $9,330. It is closely followed by $9,300 and a 1-hour SMA100 at $9,250. This barrier should slow down the bears and create a precondition for another bullish wave. The upside-looking RSI implies that the bullish potential of the coin is not exhausted yet.
On the upside, a sustainable move above $9,400 is needed for the upside to gain traction and open up the way towards the recent recovery high of $9,475. The major resistance is created by a psychological level of $9,500.
BTC/USD 1-hour chart