Bitcoin Hits Most Oversold Level Against Gold in 3 Years as BTC Risks Falling Below $100K
The BTC/Gold ratio is at its most oversold level since November 2022, though a reversal requires more technical confirmation.Summary
Bitcoin's price weakness has pushed the BTC/Gold ratio to its most oversold level since November 2022, according to the 14-day Relative Strength Index (RSI) dropping to 22.20. This suggests the ratio might be undervalued relative to gold, but an immediate bullish reversal for BTC against gold is not guaranteed without confirmation from other indicators like bullish divergences or increased buying volume.
Technically, the BTC/Gold ratio remains in a downtrend, confirmed by a death cross (50-day SMA crossing below the 200-day SMA). Concurrently, Bitcoin's dollar price is also under pressure, potentially testing levels below $100,000 as its RSI is not yet oversold and the MACD suggests continued selling. Prices are trading below the 200-day Simple Moving Average (SMA), with the lower boundary of the expanding channel around $99,500 being the next focus.
The 50-week SMA, near $101,700, is noted as a critical support level that has historically sustained rallies since early 2023. The article also mentions that Bitcoin is currently 40% below its gold-denominated all-time high.
(Source：CoinDesk)