Bitcoin's Bullish Divergences Build as Gold Approaches New $4.5K Record High

As Wall Street opened on Tuesday, Bitcoin remained under pressure, with traders predicting further price declines for the cryptocurrency.

Key Takeaways

Bitcoin shorts are increasing as Bitcoin and precious metals move in opposite directions.
Moving averages are providing tough resistance, with Bitcoin struggling to overcome the $90,000 mark.
Signs of bullish divergences are emerging for Bitcoin against both the US dollar and gold.

Bitcoin's Bullish Divergences Build as Gold Approaches New $4.5K Record High

BTC Price Trends: Traders Eye Buying Opportunities

Data from TradingView indicated that BTC/USD was trading down about 1% on the day.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

After facing resistance at the $90,000 level the previous day, optimism for Bitcoin’s price dwindled as gold and silver soared to new all-time highs. Trader Daan Crypto Trades shared on X, “$BTC keeps rejecting from its 4H 200MA/EMA trend.”

BTC/USD four-hour chart with 200SMA, EMA. Source: Daan Crypto Trades/X

Daan explained the 200-period simple (SMA) and exponential (EMA) moving average “cloud” on four-hour charts, noting that another trader, Crypto Tony, was awaiting new intraday lows for potential long entry. “I am looking for a dip to $86,800 for a possible long entry,” tweeted Crypto Tony.

“$BTC is hovering around $88,000. Movement towards $90,000 has been met with significant selling pressure,” commented crypto analyst Ted Pillows. A notable whale opened a short position on Bitcoin valued at $166,822,000 and also opened substantial short positions on Ethereum and Solana.

A Potential Gold Comeback for Bitcoin

Market optimism remains as attention turns to a bullish divergence that is apparent on the three-day chart.

Related: $90K BTC vs. Record Gold Price: 5 Key Points to Remember About Bitcoin This Week

Here, Bitcoin's relative strength index (RSI) is showing higher lows while the price is hitting lower lows. Trader Jelle remarked, “I am pretty confident that the bottom is in, and $BTC will soon push back into six-figure territory.”

BTC/USD chart with RSI, MACD data. Source: Jelle/X

Pillows highlighted that the previous two bullish divergences on the three-day chart led to BTC/USD forming a bottom.

Gold Price Chart XAU/USD one-hour chart. Source: Cointelegraph/TradingView

As gold nears the significant price of $4,500 per ounce, the daily BTC/XAU chart is also illustrating a bullish divergence forming at crucial support levels. “Gold has reached new all-time highs while BTC has remained in its range as we head into Christmas week,” concluded trading resource QCP Capital in their latest market update.

BTC/XAU one-day chart with RSI data. Source: Cointelegraph/TradingView