Bitcoin's Value Against Gold Reaches Key Support Level

According to Cointelegraph, Bitcoin (BTC) has reached a significant juncture against gold, as it tests a crucial support level. The cryptocurrency's value has dropped to 20 ounces of gold, a level not seen since early 2024. This development marks a critical point between bullish and bearish market conditions, as noted by analysts. Crypto trader and analyst Michaël van de Poppe recently shared insights suggesting potential upward movement for Bitcoin. Despite Bitcoin's struggles in gold terms, with the precious metal maintaining near-record highs amid a fourth-quarter crypto market correction, Van de Poppe sees opportunity. He highlighted that historically, when Bitcoin and gold hit their lows simultaneously, it signaled a market shift. Van de Poppe believes gold is currently overvalued, while Bitcoin is undervalued, indicating a potential bullish divergence at this support level. Historical data shows that during each Bitcoin bear cycle, the weekly relative strength index (RSI) dropping below 30 has marked a long-term bottom for the BTC/XAU pair. Van de Poppe noted that the daily RSI is beginning to show a bullish divergence, suggesting short-term upside potential. However, the weekly RSI remains low at 29.5, levels not seen in nearly three years. Wealthmanager, a trading and commentary account, emphasized the importance of the 20-ounce support level, noting that Bitcoin's last bear market began when this support was lost. They anticipate a period of consolidation at this level, with a potential break in the coming weeks. Meanwhile, crypto trader Ted Pillows observed the loss of a three-year uptrend for Bitcoin against gold, marking a challenging end to 2025 for the cryptocurrency. This article does not provide investment advice or recommendations. All investment and trading decisions involve risk, and readers should conduct their own research. Cointelegraph aims to deliver accurate and timely information but does not guarantee the accuracy or completeness of the information provided. Forward-looking statements in this article are subject to risks and uncertainties, and Cointelegraph is not liable for any loss or damage arising from reliance on this information.