Bitcoin's RSI Approaches Three-Year Lows Against Gold as Analysts Anticipate a Bullish Comeback

Summary: Bitcoin has recently dropped to a significant level in its valuation against gold, reaching about 20 ounces per Bitcoin for the first time since early 2024. This marks a crucial point for market trends, signaling potential shifts between bullish and bearish conditions. Analyses suggest that this drop could set the stage for a price reversal.

Key Takeaways

Bitcoin has dipped to 20 ounces of gold for the first time since early 2024, approaching a pivotal support level.
Analysis indicates that this value represents a boundary between a bull market and a bear market.
The relative strength index (RSI) for Bitcoin is nearing lows not seen in nearly three years, hinting at potential price recovery.

Bitcoin's RSI Approaches Three-Year Lows Against Gold as Analysts Anticipate a Bullish Comeback

Bitcoin vs. Gold: Possible Bullish Divergence at Support

In a recent analysis, crypto trader and analyst Michaël van de Poppe forecasted “more upside on the horizon” for Bitcoin. Despite Bitcoin's decline in comparison to gold, which remains near its all-time highs during the ongoing correction in the crypto market, analysts see potential for a rebound. According to data from Cointelegraph Markets and TradingView, Bitcoin now trades at approximately 20 ounces of gold — the lowest it's been since early 2024.

Van de Poppe suggests this could be an opportunity for investors. “In previous market lows, Bitcoin’s price against gold has often reached a minimum as well. One asset becomes overvalued while the other is undervalued,” he remarked to his followers on X.

BTC/XAU one-week chart with RSI, volume data. Source: Michaël van de Poppe/X

Historical data indicates that every Bitcoin bear cycle has seen the weekly relative strength index (RSI) drop into “oversold” territory below a value of 30, marking significant turning points for the market. “The encouraging news: on the daily timeframe, we're beginning to see a bullish divergence, suggesting potential upward movement in the near term,” added Van de Poppe.

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

Currently, the daily RSI is moving against price trends, while the weekly RSI sits at 29.5 — levels not observed in almost three years.

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

Likely Support Break in the Coming Weeks

Continuing the analysis, the trading account Wealthmanager highlighted that Bitcoin's previous bear market began when it failed to maintain the crucial 20-ounce mark against gold.

“Bitcoin compared to gold is at a significant support level. The last bear market started when we fell below this support threshold," a recent post on X indicated.

BTC/XAU one-week chart. Source: @Wealthmanager/X

Ted Pillows, a crypto trader and entrepreneur, noted the loss of a long-term upward trend due to Bitcoin's recent drop. He remarked that Bitcoin’s current situation reflects a concerning end to 2025.

“BTC/Gold has lost its three-year uptrend. A troubling conclusion to the year for Bitcoin,” he tweeted.

In conclusion, as Bitcoin's RSI nears a pivotal level and its price trends lower against gold, analysts suggest there may be opportunities for a turnaround. The coming weeks could be crucial for investors to watch closely.