TLDR
- BTC/Gold ratio shows rare bottom signals often linked to strong BTC gains.
- Bitcoin is trading two standard deviations below its ideal value range.
- Bitcoin has gained 14.6% YTD and 59% over the past year despite volatility.
- Past BTC/Gold bottoms often preceded new all-time highs within months.
A crypto analyst is pointing to a rare chart pattern between gold and Bitcoin, calling it a potential shift moment for investors. The analysis, based on the BTC/Gold ratio, suggests a long-term bottom signal is forming. This pattern has appeared during past downturns and often preceded strong Bitcoin rallies. Some experts say this could be a historic chance to move from gold into Bitcoin.
BTC/Gold Ratio Signals Market Turning Point
Joao Wedson, an analyst at CryptoQuant, has reported that the BTC/Gold ratio is now flashing a rare bottom signal. He shared a chart showing two indicators: a blue tag and a green tag. The blue tag represents the current low in the BTC/Gold ratio using a normalized oscillator. The green tag appears when multiple indicators align near their lows. According to Wedson, both signals are now active.
The BTC/Gold ratio compares the price of Bitcoin to gold. When the ratio drops, it suggests that Bitcoin is underperforming gold. However, when the ratio begins to rise again, it can mean Bitcoin is gaining strength. Wedson noted that these signals usually appear during deep drawdowns in Bitcoin price and often align with extreme volatility in the market.
Experts Suggest Strategic Shift from Gold to Bitcoin
Wedson’s analysis comes at a time when institutional interest in gold has been rising. He suggested that investors who are heavily exposed to gold may want to consider shifting part of their holdings into Bitcoin. “If I were you, I’d take a close look at this chart,” he said, pointing to the BTC/Gold ratio indicators.
Former BitMEX CEO Arthur Hayes also recently said that the current Bitcoin price level could be one of the best buying opportunities in years. Hayes and Wedson both point to similar historical setups that have led to major Bitcoin price increases in past market cycles. When the BTC/Gold ratio has bottomed in the past, Bitcoin has often moved to new highs within months.
Bitcoin Trading Below Value Range
Crypto outlet Milk Road added further context by noting that Bitcoin is now trading two standard deviations below its average value range. The platform said this could mean Bitcoin has entered a deep value zone. Historically, such price areas have aligned with accumulation phases, not sell-offs or market tops.
According to Milk Road, Bitcoin’s current level may not last long if previous patterns repeat. They said buyers often step in when Bitcoin trades far below its trend line support. Charts shared in the report show Bitcoin holding near a long-term support area that has triggered recovery phases in earlier cycles.
Market Confidence Between Gold and Bitcoin Shifting
Peter Schiff recently commented that Bitcoin has failed to live up to its title as “digital gold.” However, Binance founder Changpeng Zhao disagreed, stating Bitcoin continues to show strength and long-term value. The disagreement reflects a broader debate over which asset—gold or Bitcoin—offers more value over time.
The BTC/Gold ratio has become a tool used by investors to compare confidence in each asset. When the ratio rises, it often means investors are favoring Bitcoin over gold. Historical data shows that each time the ratio reached current levels, Bitcoin moved upward within months. As of press time, Bitcoin is trading at around $106,925, with a 14.6% increase year-to-date and 59% over the past year.
