Bitcoin Vs. Gold Metric Flashes Rare Signal Not Seen in Market History – See How

Overview

A significant long-term indicator comparing Bitcoin to gold has recently activated a signal that has not been observed in market history. Analysts believe that this extreme compression often precedes substantial price movements, especially given its occurrence between two major safe-haven assets. The ongoing performance of Bitcoin against gold suggests that a pivotal shift in market expectations may be on the horizon.

What Happened

The Bitcoin versus Gold monthly Bollinger Bands have begun to expand from the tightest reading ever recorded. A market technician and Bitcoin trader noted that Bitcoin’s price is currently positioned at the lower Bollinger band. A decisive close below this band could trigger a sell signal as the bands transition from a squeeze setup.

This situation indicates the potential for a significant downward trend, marking the first major downtrend on the Bitcoin versus Gold chart. Analysts have observed that Bitcoin’s performance against gold could differ from its performance against the U.S. dollar, suggesting that Bitcoin might be poised to lag behind gold in the coming period.

Throughout the year, Bitcoin has been in a notable downtrend. One analyst pointed out that Bitcoin is nearly 50% below its all-time high relative to gold, indicating that the cryptocurrency has effectively been in a bear market for an entire year. Over the past year, Bitcoin has decreased by 45% against gold. To surpass its previous all-time high against gold, Bitcoin would need to rally significantly.

Additionally, Bitcoin has reached a rare valuation point relative to gold that has not been seen in over a decade. An analyst highlighted that the Bitcoin/gold ratio has fallen below the statistical lower boundary of a long-term power-law model. Historically, such low valuations have not persisted for extended periods, as Bitcoin typically rebounds quickly when it becomes significantly undervalued against gold.

Impact on the crypto market

• The activation of this rare signal may indicate forthcoming volatility in Bitcoin’s price.
• The expanding Bollinger Bands suggest potential directional shifts that could influence trading strategies.
• Bitcoin’s ongoing underperformance against gold may lead to a reevaluation of its status as a safe-haven asset.
• The historical context of Bitcoin’s valuation relative to gold could prompt traders to monitor price movements closely.
• The current market dynamics may affect investor sentiment and strategies in the broader cryptocurrency market.

Updated: 12/2/2025, 9:23:48 PM