An alarming signal for the Bitcoin bull market: The Bitcoin/Gold ratio is threatening to fall below the 12-year-old support line. This line has historically served as a crucial support for Bitcoin’s long-term price performance relative to gold. If it is breached, it could have serious consequences for the current bull market.
What does the current chart analysis show?
According to an analysis by Northstar (@NorthstarCharts on X), the Bitcoin/Gold ratio is at a critical juncture. In the past, this line has served as support several times, always followed by a strong uptrend. Now, the chart analysis shows that the price is once again at this line – with the risk of a sustained downside breakout.
Why is this support so important?
The support line has existed for 12 years and has been tested multiple times in the past, but never permanently broken. If the Bitcoin/Gold ratio falls below this level and closes the week below it, this could already be a negative signal. However, a monthly close below the line would be even more critical. According to Northstar, this could signal the end of the current bull market or even lead to an even worse development. A correction or the beginning of a bear market? What are the consequences and possible scenarios?
Possible scenarios
Rebound at support: If the ratio bounces off the line, this could be a strong bullish signal, encouraging a renewed rally.
Weekly close below the line: This would be a warning signal indicating weakness in the market.
Monthly close below the line: If the break is confirmed, it could signal the end of the bull market and lead to longer downside.
The next few weeks are crucial. Traders and investors should keep a close eye on the Bitcoin/Gold ratio. A break below the support line could have serious consequences not only for Bitcoin, but for the entire crypto market.
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