Bitcoin RSI Hits 3-Year Low vs Gold: Bull Rebound?
Bitcoin vs. Gold: Bullish Divergence at Support
Bitcoin has hit a critical multiyear support level when measured against gold, prompting divided opinions among analysts about whether this signals a breakdown and the onset of a fresh bear market.
Recently, cryptocurrency trader, analyst, and entrepreneur Michaël van de Poppe shared his outlook on Saturday, forecasting additional upward momentum ahead for Bitcoin in the near term.
Bitcoin’s performance relative to gold has been challenging lately, especially as the precious metal continues to hover close to its all-time highs amid the fourth-quarter correction in the cryptocurrency markets.
According to data from market trackers, the BTC/XAU ratio is now trading at approximately 20 ounces of gold per Bitcoin, marking the lowest point since the beginning of 2024.
Nevertheless, Van de Poppe identifies a promising opportunity emerging at this juncture. He explained to his followers on X: “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.”
“In my thesis, Gold is getting overvalued, while #Bitcoin is getting undervalued,” he emphasized.
Historical patterns reveal that during previous Bitcoin bear cycles, the weekly relative strength index (RSI) for the BTC/XAU pair dipping into oversold territory below 30 has consistently indicated a long-term bottom.
“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 noted further.
Currently, while the daily RSI shows signs of diverging bullishly from the price action, the weekly RSI stands at 29.5, reaching lows unseen in almost three years.
Support Break “likely within the next few weeks”
On the other hand, trading commentator Wealthmanager pointed out that Bitcoin’s previous bear market commenced after the BTC/XAU pair failed to maintain support at the 20-ounce level.
“Bitcoin against Gold is at a crucial support level. The last Bitcoin bear market officially started when we lost this support,” the account cautioned via an X post.
“I expect we will consolidate here for a while, but a break is likely within the next few weeks.”
Separately, crypto trader and entrepreneur Ted Pillows highlighted the potential loss of Bitcoin’s long-term uptrend against gold with this recent decline.
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