Bitcoin (BTC) has reached a pivotal point against gold, currently testing a key support level of 20 ounces—something not seen since early 2024. Analysts view this as a critical juncture, marking the boundary between potential bullish and bearish conditions in the market.
Crypto analyst Michaël van de Poppe recently shared insights suggesting that Bitcoin could see upward movement from this level. While gold has remained near record highs amid a broader fourth-quarter crypto market correction, Van de Poppe notes that historically, simultaneous lows in Bitcoin and gold have often signaled market shifts. He believes gold may be overvalued, whereas Bitcoin is undervalued at this point, pointing to a possible bullish divergence.
Looking at historical trends, each Bitcoin bear cycle has shown that a weekly relative strength index (RSI) below 30 often marks a long-term bottom for the BTC/XAU pair. Currently, the daily RSI is beginning to show signs of bullish divergence, hinting at short-term upside potential. However, the weekly RSI remains at a low 29.5, a level not observed in nearly three years.
Market observers, including the Wealthmanager commentary account, emphasize the importance of the 20-ounce support level. Bitcoin’s previous bear market began after losing this threshold, making current consolidation at this level a key watchpoint. Crypto trader Ted Pillows also notes the recent loss of a three-year uptrend for Bitcoin against gold, highlighting a challenging end to 2025 for the cryptocurrency.
While this analysis provides valuable market context, it does not constitute investment advice. All trading and investment decisions carry risk, and readers should conduct their own research. Cointelegraph aims to deliver accurate and timely information, but cannot guarantee completeness or accuracy, and is not liable for any losses arising from reliance on this content.$BTC
