Gold and digital gold are rallying side by side.
Prices of gold hit another record high Tuesday, touching $1,974 earlier in the day and adding to an 8% rally this month. Cryptocurrency bitcoin, meanwhile, held above $10,900 and is up nearly 20% so far in July.
Ari Wald, head of technical analysis at Oppenheimer, said gold still looks good after its run-up.
"We've been recommending gold as a way to play the expansion of the [Federal Reserve's] balance sheet. It's actually the high momentum commodity, it ranks highest above all commodities out there in terms of momentum," Wald said Monday on CNBC's "Trading Nation."
However, he adds, "We do recommend sticking with it but I think it's worthwhile to highlight bitcoin instead which isn't as extended."
Wald notes that its recent breakout is setting up more gains ahead.
"Bitcoin is reversing its downtrend dating back to its 2017 peak. If you are a long-term holder, this is the type of action you'd like to see," he said.
Bitcoin remains well below its December 2017 peak of nearly $20,000.
Michael Binger, president of Gradient Investments, is still in the gold over bitcoin camp.
"Between the two I would really lean on the gold side here. When you think about it, it is really a Goldilocks environment for gold investors right now. I mean, you have a weak U.S. dollar, you have negative real interest rates. All of this is based on the prospect of rising inflation," Binger said during the same segment.
Binger agrees with Wald that bitcoin is a momentum play, but adds that it is not a "valid currency yet."
Both are up on the year. Bitcoin has rallied 53% in 2020 and gold has added 28%.