Bitcoin: Can it recover as the gold price pulls back from record highs?

Takeaways:

• Several analysts believe that the continued decline of gold in value could lead to a Bitcoin rebound.

• Rallying to $150,000–$165,000 by year’s end is still possible, based on technical analysis.

BitcoinBTC) is showing signs of bottoming out as the rally by its analog rival, gold (XAU), is starting to look increasingly overextended.

Bitcoins hint at “generational bottom” Gold dips

Gold has fallen 2.90% since Friday when it reached an all-time record of $4,380/ounce. The precious metal is still up over 62.25% for the year.

This daily relative Strength Index (RSI() Readings were consistently higher than 70 during the previous month. It indicates the asset may be overbought, and that it is at risk for profit-taking.

Bitcoin’s price has increased by nearly 4% over the course of gold’s correction. It is now back to its highest level since four months, which was around $103,535. Its RSI value is also the lowest it has been since April. mirroring a bottom structure This was the case in previous years before a return of 60 or more percent.

This inverse behaviour is interpreted by some analysts as a sign that Bitcoin’s price has bottomed out.

Analyst Pat is one of them. predicted The aforementioned “generational bottom” Bitcoin has performed better than gold in the past 4 years.

Bitcoin-to gold ratio plummeted below historic market lows last seen in 2015 and 2018. Bitcoin rallied between 100 and 600% each time.

As of mid-October, the ratio has once again dipped below –2.5, signaling that BTC may be undervalued versus gold after the metal’s record run to $4,380. It may be that this is the beginning of Bitcoin’s next bull run.

The analyst Alex WacyGold’s decline is comparable to the 2020 gold peak, which coincided with local Bitcoin bottom. Now, the question is whether or not gold will mark a bullish turn for BTC.

HSBC says gold has not yet reached its peak.

HSBC, contrary to popular belief that the record gold price run is cooling down, has redoubled its commitment to a bullish outlook. It projects that precious metals could reach as much as $5,000 per ounce as early as 2026.

This bank’s bullish view was based on the geopolitical tensions and economic uncertainties. weaker US dollarIt said that this would ensure that demand remains strong.

This rally is likely to be driven more by investors who are looking for portfolio stability than those who have been speculating on the short term.

Gold’s 2025 price rally saw several overbought corrections, but with each correction the price went even higher.

The pattern reflects a sustained level of investor confidence despite geopolitical, monetary and economic uncertainty. HSBC believes that these conditions will continue to keep the rally going until 2026.

JPMorgan analysts predict that Bitcoin will continue to grow at a rapid rate. BTC will reach $165,000 in 2025Gold is still undervalued, according to this argument.

Related: Bitcoin trader says ‘lock in’ as dip-buyers enter below $110K

Charles Edwards, an analyst at Charles Edwards & Co. noted that the breakout of $120,000 would be a powerful catalyst for cryptocurrencies. BTC toward $150,000 “very quickly.”

This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.