Gold’s price has recently been on a nearly constant upward trend. After a significant rally, an important metric related to gold has surged to peak levels. This article explores how this development could indicate a potential rise for Bitcoin (BTC).

Capital Flowing?

Gold remains the largest asset by market capitalization, recently expanding its lead over major tech companies. Its market cap has reached nearly $29 trillion, starkly ahead of NVIDIA at about $4.5 trillion.

The increase in market cap coincides with a substantial rise in gold prices, which have jumped approximately 56% over the last year, peaking at nearly $4,200.

Gold Price, Source: Yahoo Finance

While advocates for gold, such as Peter Schiff, are celebrating this milestone and anticipate further increases, others suggest a potential market correction. Crypto Rover, a notable analyst on X, warned that gold’s Relative Strength Index (RSI) has reached 91.8—the highest since the early 1980s. This metric, which helps traders identify potential reversal points, suggests that gold’s rapid valuation increase may soon lead to a correction, as noted by Crypto Rover:

“This means it’s insanely overbought, making a cooldown likely.”

This shift may lead investors to reallocating capital back into Bitcoin (BTC), potentially positioning it for its next significant move.

Continued BTC Bullish Momentum?

Many analysts continue to assert that BTC’s bullish trend is still intact, despite recent market downturns. An analyst known as BitBull maintains that BTC trades within a “giant bullish channel,” suggesting that as long as the price stays between $100,000 – $103,000, bears are unlikely to take control.

Furthermore, Carl Moon pointed out that October has historically been uncharacteristic for BTC, urging investors to ‘buy the dip’ while opportunities remain.