This chart shows that Bitcoin (BTC)'s rally against gold (XAU) is set to accelerate as US-China trade tensions ease
Bitcoin's Rise Against Gold Could Accelerate as US-China Trade Tensions Ease: Chart Analysis
Easing trade tensions between the US and China could fuel more bullish sentiment towards risk assets and put pressure on gold.
Author: Omkar Godbole | Edited by: Parikshit Mishra Updated: May 12, 2025 12:09 PM Published: May 12, 2025 11:17 AM
Key points:
- Bitcoin (BTC) has significantly outperformed gold over the past two weeks, and the bullish trend may continue to gain momentum.
- The Bitcoin to Gold ratio has broken out of an inverted head and shoulders pattern, suggesting continued Bitcoin outperformance.
- Easing trade tensions between the US and China could help fuel more positive sentiment towards risk assets, which would benefit both cryptocurrencies and stocks.
Bitcoin (BTC) has significantly outperformed gold (XAU) over the past two weeks, and the bullish trend could intensify further.
This forecast is supported by the positive dynamics of the Bitcoin-to-gold ratio, which measures the value of BTC in US dollars relative to the price of gold in US dollars per ounce, as well as the easing of trade tensions between the US and China.
The ratio recently broke out of an inverted head and shoulders pattern, a classic reversal pattern characterized by a deep trough surrounded by two smaller ones, with a trendline connecting the rises between the troughs. The breakout signals a reversal from bearish to bullish, pointing to continued outperformance for Bitcoin.
Last week, the ratio broke above the trendline, and technical analysis suggests it could rise to at least 35.00 from the current 32.00. This target was determined by adding the spread between the biggest bottom and the trendline to the breakout point, indicating a potential move higher for Bitcoin versus gold.
The current technical situation, which shows positive dynamics, is in line with previous data, which shows that BTC tends to follow the growth of gold.
Gold's sharp rally peaked above $3,500 on April 22, and the safe-haven yellow metal has since fallen more than 8% to $3,211, according to TradingView data. BTC has risen nearly 19% to $104,000 over the same period.
As the US and China eased trade tensions on Monday morning, gold could lose
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