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Bitcoin (BTC) remains above the critical demand level after the latest sell-off, showing flexibility despite a wave of liquidation in the market. While the billion-dollar leverage position was eliminated, BTC’s price was only 5% lower than last week’s high, a relatively modest correction, taking into account volatility. Investors are watching closely whether Bitcoin can stabilize at these levels, as the broader cryptocurrency market adapts to enhanced risk and diverting sentiment.
Top analyst Axel Adler highlighted the quarterly correlation between Bitcoin and gold, an important background emotional indicator of current conditions. Gold has been intense and reflecting the obvious risky moves of investors, while BTC has lagged behind in recent courses. This difference suggests that as global uncertainty increases, traditional havens are capturing capital flows, while BTC can consolidate rather than heading towards new highs.
Despite this, the fact that Bitcoin remains support remains intact despite potential stress signals from demand. As gold rally strengthens its safe position, BTC’s next move can depend on whether it uses momentum as a high beta alternative. Currently, the market is at a crossroads, balancing the potential of prudence with the new bullish stage.
Bitcoin and gold correlation spark risk debate
Bitcoin (BTC) remains above the key levels after a turbulent week, in which case liquidation rocked the cryptocurrency markets and investors turned their attention to a broader macro signal. Adler explained that the current signal is “risk” that highlights the significant differences. When the quarterly correlation between Bitcoin and gold is greater than zero, both assets tend to move in the same direction. But the latest data suggests that gold is soaring as BTC lags behind, raising questions about the real meaning of this difference to the market.
This correlation has sparked increasing speculation between analysts and macro investors. Some interpret gold’s sharp moves as warning signs of the possibility of escalating global tensions and even major geopolitical conflicts. Historically, the surge in demand for gold often coincides with the overall pressure of capital flying to safe havens or financial markets during periods of uncertainty. For these observers, Bitcoin’s lagging performance may indicate that the crypto market has not yet been fully sold at risk globally.
However, the most common view among crypto analysts is that Bitcoin will eventually catch up. In previous cycles, BTC often fell into gold in early haven gatherings, and then accelerated a liquid and speculative appetite return. Supporters believe that Bitcoin’s role as a high beta alternative to gold remains intact and its long-term bullish structure remains unchanged.
BTC/XAU shows signs of weakness
The BTC/XAU chart highlights the relative weakness of Bitcoin against gold, as the two traded about 30 ounces of gold per Bitcoin, marking a drop in the high near the recent high. Bitcoin has been struggling to maintain momentum over the past few weeks, while gold has soared rapidly, strengthening the risk of taking over the global market.
The chart shows that the short-term moving average of BTC/XAU is below the short-term moving average, indicating a bullish momentum. The 50-week SMA, which served as support in an earlier stage, is now testing again. Rests below this level may open the door to make it further disadvantages, while the 29-28 range is the next critical support. Historically, the pullback price of BTC has often coincided with macro uncertainty and flights into traditional safe havens.
Despite short-term weaknesses, the broader structure still relies on bullishness. The couple has been over 200 weeks of SMA, a sign of long-term resilience. As the market digests global risks, Bitcoin’s role as a high beta hedge remains in focus. If the risk appetite returns, BTC can quickly recover its power against gold. Currently, the difference emphasizes investor caution, with gold performing better than Bitcoin mergers. The next few weeks will be the key to determining whether BTC can recover its relative strength.
Featured images from DALL-E, charts from TradingView
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