A Potential Turning Point: Bitcoin’s Challenge to Gold’s Dominance
Following a period of notable underperformance against gold, a seasoned market analyst has identified a compelling technical pattern suggesting a possible resurgence for Bitcoin. This development emerges as financial markets grapple with the implications of gold’s extended rally, prompting renewed scrutiny of Bitcoin’s narrative as a reliable safe-haven asset.
The Evolving Bitcoin-to-Gold Ratio
The comparative strength of Bitcoin relative to gold, often tracked through their ratio, has experienced a significant downturn. From a peak of 32 on October 5th, the Bitcoin-to-gold ratio has plummeted by over 37% to approximately 20. This translates to a shift where one Bitcoin, which could purchase around 32 ounces of gold in early October, now acquires roughly 20 ounces.
This accelerated decline coincided with gold’s sustained upward momentum and Bitcoin’s retreat below critical price thresholds, fueling discussions about their respective roles in investment portfolios.
Emergence of Bullish Divergence on Daily Charts
Daily technical indicators are signaling a potential shift in momentum for the BTC/GOLD pair. A distinct bullish divergence has been observed, a pattern that often precedes a price reversal as selling pressure wanes despite lower price points.
- On November 21st, the BTC/GOLD pair reached a low of 20, with its Relative Strength Index (RSI) at 21.30.
- A subsequent lower low near December 1st was accompanied by a higher RSI low of 26.83.
- By December 26th, another trough at 19 coincided with an even higher RSI low of 32.21.
That’s a valid bullish divergence on the daily timeframe for BTCUSD vs
About The Author
