
Bitcoin Hits $110,000 Amidst Gold's 5.5% Decline
Bitcoin's price reaches $110,000 while experiencing volatility in contrast to the significant drop in gold's value.
Key Highlights:
- Bitcoin remains unstable as it reclaims the $110,000 mark.
- Liquidity is tightening around the price, making the 21-week moving average crucial to re-establish.
- Gold experiences a sharp decline of over 5.5% from its recent highs.
Bitcoin (BTC) is witnessing a tussle between buyers and sellers as Wall Street opens while gold significantly drops.
BTC one-hour chart
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Bitcoin Surges After Addressing CME Futures Gap
Data shows increasing volatility for BTC. After hitting the CME Group’s Bitcoin futures market, the BTC/USD pair rebounded towards $110,000, adjusting to the evolving liquidity conditions from trading entities pushing price movements.
BTC liquidation heatmap
BTC liquidation heatmap. Source: CoinGlass
“It’s been some time since liquidations appeared this way, considering funding rates are negative,” trader Luca discussed on X. He remarked on the risk-off sentiment with traders betting on impending downturns, while potential price resistance looms at $116,000 and above.
BTC/USD one-week chart
BTC/USD one-week chart. Source: Rekt Capital/X
Trader and analyst Rekt Capital identified the 21-week EMA as a crucial resistance level.
“Bitcoin must sustain above this historical support to set itself for reclaiming the 21-week EMA in upcoming moves.”
Gold Faces Double Top Threat with 5% Decline
Volatility is evident not only in crypto markets.
Gold, which soared to all-time highs recently, now risks a bearish “double top” formation with a staggering 5.5% daily loss looming.
@htltimor: $GOLD: Will the EQH transform into a Double Top? If so, the target is around 4k.
James Stanley of Forex.com mentioned a potential retest of $4,000 should the bearish structure arise.
XAU/USD four-hour chart
XAU/USD four-hour chart. Source: James Stanley/X
Trader Crypto Tony suggested a decline in gold could signal a rise in Bitcoin and other altcoins, given that risky assets may gain traction during uncertain market times.
“Once this pullback happens, anticipate a crypto rally.”
BTC vs XAU/USD
BTC/USD vs. XAU/USD four-hour chart. Source: Cointelegraph/TradingView