Gold has been on an absolute tear, hitting an all-time high of over $3,000 per ounce last Thursday. As investors rush to gold as a safe haven asset amid economic uncertainty, Bitcoin (BTC) is finally showing signs of recovery. The largest cryptocurrency jumped 3,2 % in the past 24 hours, currently trading around $84,500. However, the Bitcoin-to-gold ratio remains under pressure, as BTC recently broke below a crucial 12-year support line.

Bitcoin Recovers, but the Crucial 12-Year Support Line Against Gold Remains at Risk — Source: TradingView

Bitcoin is Rebounding, but Gold’s Dominance is Unrelenting

After weeks of downward movement, Bitcoin is making a cautious recovery, posting a 3,2% gain in the last 24 hours. However, this comes at a time when gold continues to surge, fueled by geopolitical instability and President Donald Trump’s new trade tariffs on China, Mexico, and Canada.

Additionally, central banks—including the U.S. and China—have been aggressively accumulating gold, further pushing prices higher. Since December, gold has climbed from $2,581 to $2,985 per ounce, marking a 15.6% increase.

Bitcoin-to-Gold Ratio at a Critical Turning Point

Despite BTC’s recent bounce, the Bitcoin-to-Gold (BTC/XAU) ratio last week fell below a major support line that had held strong for 12 years.

Crypto analyst NorthStar has warned that this could signal the end of Bitcoin’s long-term dominance over gold. Historically, Bitcoin has bounced back every time it tested this support line, but this time could be different.

If BTC fails to reclaim this key level, it could indicate that gold is regaining its throne as the ultimate store of value.

Can Bitcoin Continue Its Recovery?

Although breaking below the support line is a worrying technical signal, there are still strong arguments for Bitcoin’s comeback. BTC has seen a solid rebound from this week’s lows, and demand for Bitcoin as a hedge against inflation and uncertainty remains strong.

Analysts suggest that a break above $86,000 could be the spark needed to reignite a bullish trend.

However, if the Bitcoin-to-Gold ratio continues to fall, BTC could be at risk of correcting back to $65,000. But with the recent market optimism and renewed momentum, Bitcoin might still surprise investors and keep its long-term uptrend intact.

The next few days will be crucial for Bitcoin’s price action—will it reclaim dominance, or is gold about to prove that old money still rules the game?

Author
Recent Posts

Margharet Tess

Editor, Developer at Cryptheory Labs

I have been active in the cryptocurrency world for over 6 years, during which I have written countless articles about this sector. What fascinates me most about cryptocurrencies is their technological aspect and the problems they aim to solve. In the past three years, I have ventured into app development and am currently working on a larger project called P2E Buzzer. Stay tuned for the surprise. 🙂 My previous experiences: Business2Community.com, TradingPlatforms.com

Latest posts by Margharet Tess (see all)