Market veterans have identified strong markets Bitcoin Due to the bullish divergence towards gold, speculation Possibility of bearish trend reversal.
After a strong start to the year, Bitcoin (BTC) is on track to end 2025 on a bearish note. represent First red annual candlestick since the 2022 bear market. BTC is currently trading at $88,896, down 4.8% year-to-date. On the other hand, while the firstborn of cryptocurrencies is declining, gold (XAU) is performing very well.
rear stern Gold will compete for supremacy throughout 2025 had Becomes dominant in early October, just at that time Bitcoin's troubles have begun. Since then, BTC has crashed and gold has spike Prices hit record highs, leading to global collapse BTC/Gold pair.
Bitcoin sees bullish divergence against gold
Bitcoin has since fallen from 32 ounces on October 5th to its current level of 20 ounces. This means that during this period, Bitcoin plummeted from 32 ounces of gold to 20 ounces of gold, a decline of over 37.5%. However, amid this downtrend, veteran crypto analyst Michael van de Poppe called for attention to a pattern that could bode well for BTC.
Specifically, Van de Poppe acknowledged this in a recent statement. analysis The BTC/GOLD pair is forming a “strong” bullish divergence on the daily chart.
For the uninitiated, a bullish divergence occurs when price continues to rise. witness Although it has lowered its lows amid a consistent decline, it is an indicator of momentum, like RSI, starts recording higher lows. This pattern often occurs during a downtrend and indicates that selling pressure is waning and a bullish reversal may be around the corner.
For the BTC/GOLD pair, this bullish divergence started forming in late November. Specifically, on November 21st, the pair hit a low of 20 and the RSI dropped to 21.30. While a pair Saw Lows are just below 20 december 1.RSI witnessed An even higher low of 26.83 on the same day.
BTCGOLD1D Chart
Interestingly, an even lower low of 19 appeared on December 26th, while the RSI recorded an even higher low of 32.21. Given the right conditions, this pattern can occur. express a sign of Bitcoin, which continues to underperform against gold this quarter, could see a bullish reversal.
Weekly RSI reaches major support level
Meanwhile, Michael van de Poppe also highlighted that the weekly RSI of the BTC/GOLD pair has recently fallen to the lows last observed last year. Bitcoin market bottom. According to the weekly chart data, the RSI is currently down to 31.85. press time. The last time this low was recorded was in November 2022. behind The FTX implosion marked the bottom for Bitcoin in its bear cycle.
BTCGOLD1W Chart
According to Van de Poppe, similar RSI levels marked Bitcoin's bottom during the 2015 and 2018 bear markets. Combination of daily bullish divergence and weekly RSI lows Bolster case of Possibility of future reversal for Bitcoin. However, this is not guaranteed.
On the other hand, BTC Apparently What I gained some Momentum for gold rises from lows at 19oz gold of Current value is 20. yesterday, Mike McGlone, Bloomberg Strategist We also confirmed that although Bitcoin has lost its volatility premium over silver, the firstborn of cryptocurrencies remains at historic support levels.
