Bitcoin has recently fallen to the 25 ounce mark against gold, a significant horizontal support threshold. This situation raises the question: is it time for the Bitcoin/gold ratio to shift back in favor of Bitcoin?
As the price of Bitcoin continues to decline following its all-time high, the value of gold appears to have stabilized at the $4,000 support level. Despite this, the two-week chart indicates that the Stochastic RSI indicators are descending from their peak, suggesting that the correction phase may not yet be complete. A healthy retracement for the gold price could see it dip to around $3,600.
Looking at the weekly chart for the BTC/XAU ratio reveals an intriguing perspective. Although the ratio has dropped below the ascending trendline, which has been in place since early 2023, it has yet to confirm a definitive breakdown. The ratio is currently finding robust support at the 0.5 Fibonacci level, aligning with the 25 ounces horizontal support level. Additionally, the Stochastic RSI indicators at the bottom of the chart are positioned to move upwards.
The two-week chart also reflects a similar viewpoint. As this period concludes at the end of Friday”s trading, it is likely that a new candle will open below the ascending trendline. However, if the current candle manages to close above the 25 ounces support level, it could signal the beginning of a rebound. The Stochastic RSI indicators are currently low, a trend that is mirrored even on the monthly timeframe. This scenario raises the potential for the next upswing in favor of Bitcoin to surpass the 41 ounces all-time high.
As the market continues to evolve, traders and investors are left to ponder whether this critical juncture represents a bottom for Bitcoin against gold. The unfolding price actions will be crucial in determining the direction of this ratio in the near future.
