Is Gold's Reign at Risk with Bitcoin Aiming for $100K, Bolstered by Enhanced US-China Relations?
Rewritten Article:
Bitcoin's value (BTC) is breaking through resistance levels while gold's (XAU/USD) is facing difficulties after reaching the peak of $3,500. Improving US-China relations and a promising economic forecast have investors ditching gold in favor of Bitcoin as a go-to value store. With the potential for Bitcoin to extend its current price increase beyond gold, experts predict a several-month-long trend.
Gold Versus Bitcoin: Why Bitcoin's wining?**
A recent surge in Bitcoin's price pushed it to $95,000 before a slight dip to $94,771, signaling improved investor sentiment. Gold experienced a price dip at the significant resistance level of $3,500, currently at $3,311. The stark contrast between the two digital currencies shows investors are migrating their assets to Bitcoin.
Image 1- CN Business Confidence, provided by TradingEconomics, April 30, 2025.
Thanks to a strengthening US-China relationship and a more positive economic outlook, gold historically thrives during periods of geopolitical instability, elevated inflation, and market instability. With the economic scenario improving, as well as reduced trade war anxiety, the need for people to maintain gold as an economic protection asset has dwindled significantly.
Gold Vs Bitcoin Ratio: Bitcoin's Bullish Prediction**
Research shows that the Gold/Bitcoin ratio behaves counter to the Bitcoin/Gold value. Each instance when the gold/Bitcoin ratio hits its top marks the beginning of Bitcoin's price recovery. Significant instances in 2015, 2019, and 2022 demonstrate how Bitcoin formed its lowest values when the ratio reached an all-time high (ATH).
Chart 1- XAU/BTC 1-day chart, provided by Emmaculate, published on TradingView, April 30, 2025
Technical analysts believe the breakout in the Bitcoin/Gold ratio to be an important indicator. A breakout pattern in the Bitcoin/Gold ratio has historically led to Bitcoin delivering superior returns compared to gold in previous instances. With Bitcoin surpassing its long-term resistance levels during a recent breakout, there's a strong possibility for a significant market boost.
Chart 2- BTC/XAU 1-day chart, provided by Emmaculate, published on TradingView, April 30, 2025.
An advancing Bitcoin/Gold ratio will allow Bitcoin to attract more financial capital while performing better than gold. The persistent bullish market movement suggests Bitcoin may challenge new resistance barriers on its way to a potential price surge towards the $100,000 level. Based on past market behavior, Bitcoin could witness significant expansion during the coming months with the Bitcoin/Gold ratio on an upward trend.
Is Bitcoin Aiming for a Major Bull Run Toward $100,000 in May?
The resilient bullish picture of Bitcoin isn't hard to miss. It broke through the $95K mark before slightly sliding to $94,771 in the past 24 hours. Bitcoin is still up 0.17% and 15% in the past month, indicating a possible rally towards $100K.
Currently, the BTC bulls have flipped above the important moving averages, including the 50-day and 200-day MA, suggesting the advantage is with the buyers. If the key support level holds, Bitcoin could soar upward toward $97K. Intense buying activities could see the leading cryptocurrency reclaim the $100K mark in the first week of May.
Chart 3- BTC/USD 1-day chart, provided by Emmaculate, published on TradingView, April 30, 2025.
A quick glance at the Relative Strength Index reveals it around 66, suggesting a bullish momentum. If the bulls keep adding Bitcoin to their portfolios, the RSI could continue its upward trend, potentially reaching the 70-overbought region.
If the recent pace in the Bitcoin market slows down, Bitcoin could pull back or consolidate. In this scenario, the $92,761 support area will serve as a safety net for the BTC bulls. Intense early profit booking could lead to further downside towards $91,650 or $90K.
What's Next for Gold as it Retraces From $3500 Highs?
When the long-term resistance barrier at $2,075 was breached in early 2024, the price of gold soared to new heights until reaching multiple stabilization phases before each surge. The current peak at $3,500 has formed a key reversal pattern.
Chart 4- XAU/USD 1-day chart, provided by Emmaculate, published on TradingView, April 30, 2025.
Two crucial support areas can be found at $3,000 and $2,800 because these levels were significant during past periods of consolidation. Analysis suggests that the price will form a consolidation pattern before starting the next upward movement towards reclaiming $3,500. All the while, the ongoing growth of the Bitcoin/Gold ratio indicates a promising future for cryptocurrencies, potentially making digital gold the investment of choice.
- The improving US-China relations and a positive economic forecast have led investors to favor Bitcoin over gold as a store of value.
- The recent surge in Bitcoin's price pushed it to $95,000 before a slight dip, showing improved investor sentiment, while gold's price has dipped at the significant resistance level of $3,500.
- A breakout in the Bitcoin/Gold ratio, historically an important indicator for technical analysts, has the potential to lead to Bitcoin delivering superior returns compared to gold.
- The resilient bullish picture of Bitcoin suggests the possibility of a rally towards $100K, with the BTC bulls having flipped above important moving averages.
- If the key support level holds, Bitcoin could soar upward towards $97K, with intense buying activities potentially seeing it reclaim the $100K mark in the first week of May.
- The Gold/Bitcoin ratio's upward trend indicates a promising future for cryptocurrencies, potentially making digital gold the investment of choice.
- As gold retraces from its $3,500 highs, two crucial support areas can be found at $3,000 and $2,800, with analysis suggesting the price will form a consolidation pattern before starting the next upward movement towards reclaiming $3,500.
