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

The key takeaways:

• According to several analysts, the ongoing decline in gold could be the catalyst for Bitcoin’s recovery.

• 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.

Bitcoin hints Bitcoin “generational bottom” Gold dips

Gold has fallen 2.90% since Friday when it reached an all-time record of $4,380/ounce. Although the price of gold has dropped since Friday, it is still higher than 62.25% for the year.

The daily relative strength (RSI() Readings were consistently higher than 70 during the previous month. It indicates the asset may be overbought, and that it is likely to take profits.

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. The 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.

Some analysts believe that this behavior indicates the Bitcoin is nearing its bottom.

This includes Pat the analyst. 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 has risen between 600% and 100% 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. This could be the start of Bitcoin’s new bull phase.

The analyst Alex WacyThe gold pullback is very similar to that of its peak in 2020, when it coincided with the local Bitcoin bottom. Now, the question is whether or not gold will mark a bullish turn for BTC.

HSBC warns that gold prices will not peak until the end of this year

HSBC’s bullish forecast has been reaffirmed, despite the increasing view that gold may not be able to maintain its record-breaking run. The precious metal is projected to reach $5,000 an ounce in 2026.

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

In contrast to previous rallies this rally will be led by long-term, conservative investors looking for stability in their portfolio, not short-term speculators.

Gold’s rally for 2025 saw several overbought corrections, but with every dip the price went even higher.

The pattern reflects the sustained confidence of investors amid the geopolitical, monetary and economic uncertainty that HSBC believes will sustain the rally into 2026.

JPMorgan analysts predict that Bitcoin will continue to grow at a rapid rate. BTC will reach $165,000 in 2025It is argued that it still remains undervalued in comparison to gold.

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

Charles Edwards also noted that an important breakout over $120,000 can propel the market. 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.