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Bitcoin Versus gold: Do or Die

Bitcoin By
Charts Hint At Brewing Bitcoin Rally To New All-time Highs
Charts Hint At Brewing Bitcoin Rally To New All-time Highs

BitcoinBTCAs a key support is retested, ) has reached classic bottom terrain.

Important points

  • Bitcoin falls to 20 ounces gold for the very first time since 2024.

  • The analysis states that the current market is at a borderline between bullish and bearish territory.

  • The three-year Bitcoin gold uptrend is almost gone.

The bullish divergence between Bitcoin and gold is at support

Analysis from crypto trader, analyst and entrepreneur Michaël van de Poppe on Saturday predicted “more upside on the horizon” Bitcoin.

Bitcoin is struggling to compete with gold as the precious metal stays near all-time highs Through the Q4 cryptocurrency market correction.

The Data of Cointelegraph Markets You can also find out more about the following: TradingView shows that BTC/XAU now trades at around 20 ounces — its lowest levels since early 2024.

Van de Poppe’s opportunity, on the other hand, is abounding.

“The last times the markets have hit their low, that was the moment BTCUSD/Gold has hit the low as well. One of them is getting overvalued. One of them is getting undervalued,” He told X of his followers. 

“In my thesis, Gold is getting overvalued, while #Bitcoin is getting undervalued.”

BTC/XAU weekly chart with RSI and volume data. Source: Michaël van de Poppe/X

The weekly relative strength (%) index has shown that during each Bitcoin bear cycles, it is the only indicator which can be used to compare.RSIDropping into “oversold” The pair’s long-term low was a territory under 30.

“The best part: on the daily timeframe it starts to make a bullish divergence, signalling that there’s more upside on the horizon in the short term,” Van de Poppe added.

BTC/XAU daily chart with RSI. Source: Cointelegraph/TradingView

Weekly RSI sits currently at 29.5, a level not seen since nearly three year ago.

BTC/XAU chart for one week with RSI. Source: Cointelegraph/TradingView

Support Break “likely within the next few weeks”

Continuing the discussion, the trading and commentary account Wealthmanager reiterated the fact that Bitcoin’s last bearish market started because BTC/XAU failed to reach the 20-ounce level.

Related: Bears take over below $90K? 5 things to know in Bitcoin this week

“Bitcoin against Gold is at a crucial support level. The last Bitcoin bear market officially started when we lost this support,” An X-post warned. 

“I expect we will consolidate here for a while, but a break is likely within the next few weeks.”

BTC/XAU one-week chart. Source: @Wealthmanager/X

Ted Pillows of Ted Pillows Crypto Trading and Entrepreneurs noted that the drop in bitcoins was a sign that cryptocurrencies were losing their long-term trend.

The article is not intended to provide investment advice. Each investment or trading decision involves a certain amount of risk. Readers should do their own research before making any decisions. Cointelegraph, while striving to give accurate information and in a timely manner, does not guarantee accuracy, completeness or reliability. The article could contain statements which are forward-looking and subject to risk. Cointelegraph is not responsible for loss or damages resulting from your reliance upon this information.