Bitcoin vs. Gold: $BTC Hits Critical Support at 20 Ounces
Bitcoin (BTC) has reached a pivotal market juncture, testing a major support level against gold. For the first time since early 2024, the BTC/XAU ratio has dropped to 20 ounces of gold, a threshold historically separating bullish and bearish cycles.
Market Analysis & Indicators:
Bullish Divergence: Analyst Michaël van de Poppe suggests gold is currently overvalued while Bitcoin $BTC remains undervalued. He notes that the daily Relative Strength Index (RSI) is signaling a potential upward shift.
Historical Bottoms: The weekly RSI has dipped to 29.5, a three-year low. Historically, a weekly RSI below 30 has marked long-term bottoms for the pair.
Risk Zone: Traders warn that losing the 20-ounce support previously triggered bear markets. While some anticipate a consolidation period, others note the break of a three-year uptrend, signaling a challenging close to 2025.
This divergence suggests a "capitulation" phase where Bitcoin$BTC may soon reclaim momentum against precious metals.
