Bitcoin-Gold Ratio Faces Decline Amid Wall Street Losses: Implications for BTC Price
Bitcoin’s potential to mimic gold’s price surge might be in jeopardy as historical market patterns and recent Wall Street turmoil present a bearish outlook. The Bitcoin-to-gold (BTC/XAU) ratio has dropped below its 50-period EMA, hinting at further declines towards the 200-period EMA, reminiscent of trends in 2021 and 2022 where Bitcoin saw significant price drops. Notably, the US stock market’s $13 trillion loss underscores a correlation with Bitcoin’s downturn. Analysts suggest a possible decline toward Bitcoin’s 200-week EMA around $50,950 could occur. Despite occasional short-term rallies, traders should be cautious as the historical patterns indicate potential continued sell-offs.
Bearish
The news suggests a bearish impact on Bitcoin due to the BTC/XAU ratio breaking critical EMAs and the significant correlation with Wall Street losses. Historical patterns show that such crossovers have led to substantial price drops. The recent US stock market turbulence, compounded by a massive financial loss, hints at likely further sell-offs in the crypto market. Despite potential short-lived recoveries, the overall market sentiment remains pessimistic as traders brace for possible declines towards the 200-week EMA.