While gold has posted major gains, Bitcoin (BTC) continues to show major signs of weakness, with prices drifting toward lower support levels and now approaching the closely watched $82,000 mark, a pivotal point in determining the next major direction for the world’s largest cryptocurrency.
Against this backdrop, market analyst Doctor Profit has drawn attention to what he describes as one of the most important charts of the current Bitcoin cycle: the Gold‑to‑Bitcoin (GOLD/BTC) ratio.
What The Gold-To-Bitcoin Ratio SuggestsProfit pointed out that this relationship played out during the previous cycle, accurately marking Bitcoin’s top in 2021 and its bottom in 2022. He argues that the same pattern has repeated in the current cycle, claiming Bitcoin’s recent top near $125,000 when the gold‑to‑Bitcoin ratio once again reached the 0.02 level.
Assuming a gold price of roughly $5,500 per ounce, dividing that figure by 0.11 implies a Bitcoin price near $50,000. That outcome, he noted, aligns with his broader expectation that Bitcoin’s cycle low could fall somewhere between $50,000 and $60,000.
BTC Nearing Late‑Cycle Bear Phase?Van de Poppe highlighted the relative strength index (RSI) of Bitcoin measured against gold on the weekly timeframe, noting that it has reached the lowest level ever recorded.
The analyst also pointed to Bitcoin’s Z‑Score indicator, a metric used to assess whether the cryptocurrency is overvalued or undervalued by comparing its market capitalization to its realized capitalization, adjusted for volatility.
At the time of writing, BTC was trading at $83,435, with losses of 2.2% and 7% recorded in the 24-hour and seven-day time frames, respectively.
Featured image from DALL-E, chart from TradingView.com
