With Bitcoin (BTC) still losing ground after its surge up to the $112,000 all-time high, gold is currently breaking out of a bull flag. The two soundest money assets are interchanging as the go-to flight to safety, and it looks like it might be gold’s turn again. $BTC attempts breakout from falling wedge Source: TradingView In the short-term chart for $BTC might have just started looking up. The falling wedge chart pattern isn’t the most perfect, but if it is legitimate, a breakout could be taking place. If the bulls can now push the price up and beyond the $105,500 resistance, a return to more bullish price action could be the result. A failure to breakout could mean $BTC coming down to the $102,000 major support. $BTC cause for concern in weekly timeframe Source: TradingView The fly in the ointment for $BTC is the breakdown below the ascending trendline on the weekly timeframe which has just been confirmed. Add to this the cross down of the indicators in the Stochastic RSI, leaving plenty of cause for concern. On the positive side of things, the price is holding above the strong supports at $104,000 and $102,000. If this support can hold, and there is a strong surge, perhaps due to some catalyst, the price can quickly get back to the all-time high and turn the weekly Stochastic RSI indicators back around. Gold is staging a breakout Source: TradingView Meanwhile, the gold price is also staging a breakout. Since gold hit the all-time high on 22 April at $3,500, the price has chopped sideways and has formed a bull flag. Monday is witnessing the breakout of this flag. The measured move out of the flag is to around $3,700. BTC/XAU has started to reverse in favour of gold Source: TradingView The Bitcoin/Gold chart on the weekly timeframe is suggesting that it’s possibly time for gold to take back the reins from Bitcoin. The 38% rise for $BTC against gold foundered at the 32 ounce resistance, and this week’s candle falling below the ascending trendline is a sign that gold is going to come back into the limelight. The weekly Stochastic RSI is another factor in gold’s favour. The indicator lines look to be crossing back down, bringing upside price momentum on the side of gold. Looking ahead, what will be important is how far down this potential correction for $BTC against gold will go. If the correction goes below the previous swing low, this will signify that $BTC would be changing to a downtrend against gold. However, if BTC/XAU can hold the 25 ounce support and bounce from there, the trend would continue higher in Bitcoin’s favour. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
