Gold has reached its highest point ever while Bitcoin struggles. Bitcoin is still behind, with its combined range of around $112,600, and Gold has recently jumped to a new all-time high of over $3,640. This contradiction draws attention to major changes in the story. Investors are no longer sure where to place their short-term capital allocations as traditional safe haven assets outperform the risky cryptocurrency market.
Over the past few weeks, the Gold Chart has shown a robust parabolic gathering, with obvious momentum pushing prices to unprecedented levels. Momentum indicators such as the Relative Intensity Index (RSI), currently above 80, show extreme bullishness following a decisive breakout past $3,454.
These excesses often indicate the possibility of short cooling, but gold's macro support (including central bank purchases, inflation hedging and geopolitical risks) maintains a long-term bullish outlook. Returning to the $3,450 to $3,500 range could be a consolidation before additional profits.
However, Bitcoin's performance is much worse. Bitcoin has recovered from a support level of $110,800, but encounters immediate resistance at $114,800, where the 50-day EMA limits its upward momentum. According to the volume profile, there doesn't seem to be much aggressive purchasing pressure.
Given that RSI is close to neutral territory, Bitcoin is still susceptible to regression, especially if gold continues to benefit from macroeconomic conditions. If Bitcoin is broken and unable to hold it, you can return to $110,000 in support, and even a 200-day EMA located at around $104,600.
For investors, the difference between Bitcoin's inability to recover momentum and the clean uptrend in gold is impressive. Bitcoin is less attractive in the current macro environment due to its volatility and its risky assets, but its ability to enhance Gold as a hedge against uncertainty has been enhanced.
As momentum continues in the future, gold could reach new highs, but Bitcoin must see a reversal with a massive breakout of over $116,000. In contrast to authentic performances, the digital gold storyline looks shaky to that point.
