Bitcoin's Potential Rebound Amid Gold's Pullback

According to Cointelegraph, Bitcoin (BTC) may be on the verge of a significant rebound as gold (XAU) experiences a pullback. Analysts suggest that Bitcoin could rally to between $150,000 and $165,000 by the end of the year, based on technical analysis. The cryptocurrency is showing signs of bottoming out as gold's rally appears to have stalled after reaching an all-time high of approximately $4,380 per ounce. Despite a 2.90% drop since then, gold remains up by over 62.25% year-to-date. Bitcoin has gained nearly 4% during gold's correction, recovering from its lowest point in four months near $103,535. Its relative strength index (RSI) is at its lowest since April, indicating a potential bottom structure similar to previous rebounds of 60% or more. This inverse relationship between Bitcoin and gold suggests that Bitcoin's price may be bottoming, according to some analysts. Analyst Pat highlights a "generational bottom" for Bitcoin, noting its performance relative to gold over the past four years. The Bitcoin-to-gold ratio has dropped to levels historically associated with market bottoms, last seen in 2015, 2018, 2020, and 2022, each followed by significant Bitcoin rallies. Analyst Alex Wacy draws parallels between gold's current pullback and its 2020 peak, which coincided with a local Bitcoin bottom. The question remains whether gold will once again signal a bullish reversal for Bitcoin. Meanwhile, HSBC maintains a bullish outlook for gold, projecting it could reach $5,000 per ounce by 2026, driven by geopolitical tensions, economic uncertainty, and a weaker US dollar. The bank anticipates that long-term investors seeking portfolio stability will drive this rally, rather than short-term speculation. Bitcoin's outlook remains optimistic, with JPMorgan analysts predicting it could reach $165,000 in 2025, arguing it is undervalued relative to gold. Analyst Charles Edwards also suggests that a breakout above $120,000 could propel Bitcoin toward $150,000 rapidly. This article does not provide investment advice or recommendations. Readers should conduct their own research before making investment decisions.