Bitcoin advanced on Monday, ending a 10-day-long price consolidation, as the U.S. dollar weakened against gold and fiat currencies.
The number one cryptocurrency by market value printed a high of $10,691 at 14:05 UTC, the highest level since Sept. 4, according to CoinDesk’s Bitcoin Price Index.
The bulls finally led the price action, having shown little interest in the preceding 10 days when the cryptocurrency was stuck in a narrow range of $10,000 to $10,500.
On-chain metrics kept improving despite the price pullback from $12,000 to $10,00 earlier this month. Many expected a breakout.
While bitcoin gained over 3%, gold, a classic haven asset, rose 1% to $1,960 per ounce, according to data source TradingView.
The 60-day correlation between bitcoin and gold recently rose to a record high above 0.5. Correlations move between 0 to 1.
Correlations whose magnitude are between 0.5 and 0.7 indicate the two assets are moderately positively correlated. Above 0.7 means a strong positive correlation, meaning the two assets are moving in tandem.
Meanwhile, the U.S. Dollar Index, which gauges the greenback’s value against a basket of major currencies, fell by 0.4%.
Bitcoin has evolved as a macro asset since the beginning of the coronavirus pandemic in March and has increasingly taken cues from the action in the forex markets and gold in Q3 2020.