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While Bitcoin struggles, gold is reaching its highest point ever. Bitcoin is still lagging behind, trapped in a consolidation range around $112,600, while gold has recently jumped to a new all-time high, trading above $3,640. This discrepancy draws attention to a significant change in the narrative: investors are now unsure of where to place their short-term capital allocation, as traditional safe-haven assets are outperforming riskier cryptocurrency markets.
In recent weeks, the gold chart has shown a robust parabolic rally, with evident momentum pushing the price into previously unheard-of levels. Momentum indicators, such as the Relative Strength Index (RSI) — which is currently above 80 — are displaying extreme bullishness following the decisive breakout past $3,454.
Although these overbought circumstances frequently point to the possibility of a brief cooling, gold’s macro support — which includes central bank purchases, inflation hedges and geopolitical risk — maintains the long-term bullish outlook. Any decline back toward the $3,450-$3,500 range might be a consolidation prior to additional gains.
The performance of Bitcoin, however, is much worse. Although Bitcoin has recovered from the $110,800 support level, it still encounters immediate resistance at $114,800, where the 50-day EMA is limiting its upward momentum. There appears to be less aggressive buying pressure, according to the volume profile.
Given that the RSI is close to neutral territory, Bitcoin is still susceptible to retracements, particularly if gold continues to benefit from macroeconomic conditions. Should Bitcoin fail to break and hold above $116,000, it may return to the $110,000 support, or even the 200-day EMA, which is located around $104,600.
For investors, the difference between Bitcoin’s inability to recover momentum and gold’s clean uptrend is striking. While Bitcoin is less attractive in the current macro environment due to its volatility and correlation with risky assets, gold’s function as a hedge against uncertainty is being strengthened.
Going forward, if momentum continues, gold might continue to reach new highs, but Bitcoin needs to confirm any reversal with a significant breakout above $116,000. In contrast to the real thing’s performance, the digital gold narrative appears unsteady until that point.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team