"Bitcoin has struggled to maintain a sustained correlation with Gold, recently only moving in unison during market downturns. However, examining Bitcoin's price action through the lens of Gold rather than USD reveals a more complete picture of the current market cycle. By measuring Bitcoin's true purchasing power against comparable assets, we can identify potential support levels and gauge where the bear market cycle may be approaching its conclusion."
"Breaking beneath the 350-day moving average at about $100,000 and the significant psychological 6-figure barrier marked the functional entry into bear market territory, with Bitcoin declining approximately 20% immediately thereafter. From a technical perspective, trading beneath The Golden Ratio Multiplier moving average has historically indicated Bitcoin entering a bear cycle, though the narrative becomes more interesting when measured against Gold rather than USD."
"The Bitcoin versus Gold chart tells a notably different story than the USD chart. Bitcoin topped out in December 2024 and has since declined over 50% from that level, whereas the USD valuation peaked in October 2025, significantly beneath the highs set the prior year. This divergence suggests that Bitcoin may have been in a bear market for considerably longer than most observers realize."
Bitcoin broke beneath the 350-day moving average near $100,000 and the six-figure psychological barrier, triggering a roughly 20% drop. Trading beneath the Golden Ratio Multiplier moving average has historically marked entry into bear cycles. Measured against Gold, Bitcoin peaked in December 2024 and is down over 50% since, while USD valuation peaked later and remained well below prior highs. Historical bear cycles measured in Gold saw drawdowns of roughly 76–86% lasting about 364–406 days. Bitcoin is currently down 51% in about 350 days versus Gold, suggesting the pullback may be approaching critical support levels as institutional flows deepen the market.
Read at Bitcoin Magazine
Unable to calculate read time
Collection
[
|
...
]