Bitcoin Stabilizes Above $90,000 as Gold-to-BTC Ratio Flashes Rare “Asymmetric” Buy Signal
Bitcoin (BTC) has stayed above the important $90,000 milestone, gaining 1.1% in the last 24 hours after a lot of ups and downs earlier this
Quick overview
- Bitcoin has remained above $90,000, gaining 1.1% in the last 24 hours after fluctuating earlier in the week.
- The Bitcoin-to-gold ratio has dropped to its lowest level since November 2023, prompting some analysts to view this as a buying opportunity for Bitcoin.
- Concerns about quantum computing's impact on Bitcoin pricing have sparked debate, with some attributing price stagnation to supply unlocks as BTC approaches $100,000.
- Technical analysis indicates Bitcoin faces resistance levels at $90,500 and $91,350, with significant support at $87,200.
Bitcoin BTC/USD has stayed above the important $90,000 milestone, gaining 1.1% in the last 24 hours after a lot of ups and downs earlier this week. The largest cryptocurrency in the world by market cap fell below $87,200 on Tuesday before bouncing back. This happened because traders were dealing with conflicting stories about anxieties about quantum computing and a bad comparison to gold’s record-breaking performance.
Gold Outperformance Creates Rare Investment Opportunity
The Bitcoin-to-gold ratio has dropped to 18.5 ounces per BTC, which is the lowest level since November 2023. This number, which shows how many ounces of gold it takes to buy one Bitcoin, has dropped a lot as gold hit an all-time high of $4,888 while Bitcoin has trouble getting back above $95,000.
Some well-known analysts, on the other hand, see this difference as a tip to buy Bitcoin rather than an indication that its long-term prospects are bad. André Dragosch, Bitwise’s European head of research, said that the current situation is “very rare” and that money might move from gold to Bitcoin in the first quarter of 2026.
Charles Edwards, the founder of Capriole Investments, said that gold bull markets in the past had seen gains of more than 150%, and he thinks gold prices might reach $12,000 in three to 10 years. Dragosch, on the other hand, says that gold’s strength comes from governments buying hard assets instead of treasury bonds. This trend has been speeding up since 2008 and may eventually help Bitcoin as money moves into riskier assets.
Bitcoin’s Quantum Computing Narrative Faces Skepticism
Bitcoin’s recent poor performance has led to a debate about whether fears about quantum computing are really affecting pricing. The conversation got more heated when Wall Street consultant Christopher Wood took a 10% Bitcoin allocation out of a model portfolio because he thought quantum technology could pose long-term dangers.
But some well-known people in the crypto field have disagreed with this interpretation. Vijay Boyapati, a supporter of Bitcoin, said that a simpler reason for the price stagnation is that as BTC got close to $100,000, a lot of supply would be unlocked, causing long-term holders to sell off their holdings and take profits. Boyapati said, “Rising prices are like waves hitting a glacier. Eventually, a piece of supply breaks off and crashes onto the order books.”
James Check, co-founder of Check on Chain and former Lead Analyst at Glassnode, mostly agreed. He said that while quantum computing “keeps some capital away,” the difference between gold and Bitcoin is mostly down to how governments buy them, not anxieties about the technology itself. Check said that Bitcoin has already taken on selling pressure from long-term holders that “would have killed every previous bull three times.”
BTC/USD Technical Analysis Points to Critical Junctures
Bitcoin has a tough technical setup in the short term. The cryptocurrency is now trading below both the $90,500 level and the 100-hour simple moving average. There are two bearish trend lines that are keeping it from going up: one below $90,300 and the other at $93,000.
The first level of resistance is $90,500, and the second level is $91,350, which is the 50% Fibonacci retracement level of the recent drop from $95,475 to $87,200. If the market closes over $91,350, it might start a rebound above $93,000 and maybe even $95,000.
On the downside, there are support levels at $89,150 and $88,000, with significant support at $87,200. If the price breaks below this zone, losses might speed up around $85,500, where analysts think there will be a lot of buying interest.
Market data shows that about $260 million in leveraged long positions were sold off on Tuesday. This suggests that most of the overleveraged bulls have been flushed out, which could ease the immediate pressure on the downside.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save