Bitcoin’s Price Correction Deepens as Bulls Await Rotation from Gold Rally

Bitcoin’s (BTC) price continues to struggle, slipping below key support levels even as investors hope for a shift of capital from gold’s ongoing rally into the leading cryptocurrency. Market analysts note that Bitcoin is now at its most oversold level against gold since late 2022, based on the 14-day Relative Strength Index (RSI), which recently fell to 22.20. Typically, RSI readings below 30 signal oversold conditions—suggesting that Bitcoin may be undervalued relative to gold after heavy selling pressure.

However, technical analysts warn that an oversold RSI doesn’t automatically guarantee a rebound. For a sustainable bullish reversal, confirmation from other indicators—like rising trading volume, bullish divergence, or signs of downtrend exhaustion—is needed. Without these, Bitcoin’s weakness could persist, with sellers maintaining control in the BTC/Gold ratio.

Adding to bearish sentiment, the BTC/Gold chart has confirmed a “death cross,” where the 50-day simple moving average (SMA) falls below the 200-day SMA—a pattern historically viewed as a negative signal for price momentum. Bitcoin’s dollar pair (BTC/USD) mirrors this bearish outlook, trading below its 200-day SMA and approaching the lower edge of its expanding price channel near $99,500.

The 14-day RSI for BTC/USD has yet to enter oversold territory, while the MACD histogram continues to show deeper negative bars, both suggesting that the sell-off could continue. Momentum traders may add to downward pressure as prices stay below the 200-day SMA.

Despite the short-term weakness, Bitcoin’s 50-week SMA—around $101,700—remains a crucial long-term support. This moving average has historically acted as a foundation for bullish rallies, and a sustained hold above it could once again signal a potential turnaround for Bitcoin’s price trajectory.