Bitcoin Approaches Potential Recovery Against Gold: Technical Analysis
After a period of significant underperformance against gold, Bitcoin may be nearing a crucial technical turning point. Analysts highlight bullish signals that suggest a possible trend reversal could be on the horizon.
Key Takeaways
- 1## Bitcoin Approaches Potential Recovery Against Gold After weeks of markedly underperforming relative to gold, Bitcoin is showing signs of a potential technical recovery that could signal a reversal in its current trend, according to recent market analysis.
- 2## Severe Underperformance Reaches Inflection Point The Bitcoin-to-gold ratio has witnessed a dramatic decline, plummeting over 37% from 32 on October 5 to approximately 20 today.
- 3This steep drop highlights Bitcoin's considerable weakness relative to gold during a time when traditional safe-haven assets have attracted significant investor attention.
- 4The divergence has been particularly pronounced in 2025, with gold surging more than 70% while Bitcoin has faced a decline of 7%.
- 5Currently, Bitcoin trades at $87,750, reflecting a 4.
Bitcoin Approaches Potential Recovery Against Gold
After weeks of markedly underperforming relative to gold, Bitcoin is showing signs of a potential technical recovery that could signal a reversal in its current trend, according to recent market analysis.
Severe Underperformance Reaches Inflection Point
The Bitcoin-to-gold ratio has witnessed a dramatic decline, plummeting over 37% from 32 on October 5 to approximately 20 today. This steep drop highlights Bitcoin's considerable weakness relative to gold during a time when traditional safe-haven assets have attracted significant investor attention.
The divergence has been particularly pronounced in 2025, with gold surging more than 70% while Bitcoin has faced a decline of 7%. Currently, Bitcoin trades at $87,750, reflecting a 4.8% loss year-to-date.
Technical Indicators Point to Possible Reversal
Analyst Michaël van de Poppe has identified what he calls a "strong" bullish divergence on the daily chart for the BTC/GOLD pair. This technical pattern illustrates the Relative Strength Index (RSI) forming higher lows, even as prices continue to register lower lows—an arrangement that typically indicates diminishing selling pressure and potential trend exhaustion.
Furthermore, the weekly RSI for the Bitcoin-to-gold ratio has dropped to 31.85, a level that has historically signaled market bottoms. Similar RSI figures were observed during the November 2022 market bottom following the FTX collapse, which marked the beginning of recovery phases.
Market Implications
The convergence of these technical indicators—including a daily bullish divergence and a heavily depressed weekly RSI—suggests that the downtrend in the BTC/GOLD pair may be losing momentum. However, it's important to recognize that these signals serve as early warnings rather than definitive confirmations of a reversal.
For investors keeping a close eye on both cryptocurrency and precious metal markets, these technical developments could signify a shifting risk-reward dynamic between digital and traditional assets.
Conclusion
While Bitcoin has significantly underperformed gold in recent months, the current technical analysis indicates that this trend may be nearing exhaustion. The presence of bullish divergence patterns and oversold conditions across multiple timeframes creates a foundation for cautious optimism. Nevertheless, market participants might wait for confirming price actions before arriving at definitive conclusions about a sustained reversal.
Why It Matters
Traders
For short-term traders, the emerging bullish divergence and oversold conditions might provide an opportune moment to capitalize on potential price rebounds in Bitcoin relative to gold.
Investors
Long-term investors should consider how shifts in the BTC/GOLD ratio might signal changes in market sentiment, offering potential entry points ahead of a broader recovery in cryptocurrency markets.
Builders
Developers and builders in the crypto space should monitor these trends closely, as changes in market dynamics can affect user adoption and the infrastructure surrounding Bitcoin and other digital assets.
