Bitcoin-Gold RSI Repeats Pattern Seen at Major Market Lows

The relative strength index (RSI) of Bitcoin measured against gold has come back to a historically important phase. This has gained recognition from traders for tracking long-term valuation gestures.

According to recent chart observations shared by market analysts, the BTC-to-gold RSI has outstretched the 30 level for only the fourth time on record. This is a threshold previously associated with major BTC market bottoms.

Also Read: Bitcoin Scarcity Narrative Strengthens as 20M BTC Mining Milestone Nears

Understanding the Bitcoin–Gold RSI Metric

According to CoinMarketCap, at the time of writing, the coin is trading at $ 92,971.59 with a 2.44% decrease in rate. The market cap of the coin has exceeded $1.85 trillion, and the volume of the token is $40.23 billion.

Source: CoinMarketCap

The BTC–gold RSI compares the coin’s price action relative to gold rather than against fiat currencies. RSI is a momentum oscillator that spans from 0 to 100 and is frequently used to identify overbought or oversold zones. A reading near or below 30 typically indicates oversold phases, indicating that selling pressure may be exhausted relative to historical norms.

Gold has habitually been viewed as a store of value during periods of economic unpredictability. When BTC underperforms gold to the scale that the RSI reaches the oversold region, it indicates that the cryptocurrency’s relative valuation has decreased notably. Generally, such times have happened near the end of extended bearish rallies for the token rather than during market peaks.

Outlook and Key Technical Indicators

BTC’s price chart reveals a downward momentum. It may climb toward the resistance (yellow) at around $93,538.85. Assuming the bullish pressure strengthens, the golden cross might emerge and send the price up to test the $94,000 range.

If a reversal occurs, the bears may push the token’s price further down to the support level (blue) at $92,357.36. In case the downside correction gains more traction, the death cross could form and likely drive the asset’s price to a low of $90,000 or even lower.

The moving average convergence divergence (MACD) indicator shows the coin experiencing a bearish momentum since the MACD line (blue) is below the signal line (orange). The Relative Strength Index (RSI) indicates the coin is being oversold.

Source: TradingView

Also Read: Bitcoin Sustained Strength Could Open Path Toward $100,000