A leading crypto analyst has identified what he calls a “historic opportunity” for investors to shift from gold to Bitcoin (BTC). Joao Wedson, a verified author at CryptoQuant, said bottom signals in the BTC/Gold ratio are flashing strongly. This suggests a potential turning point in the long-term relationship between the two assets.
Rare Bitcoin/Gold Bottom Signals Hint at Strong Reversal Potential
The Wedson post explained that these bottom signals rarely appear. When they do, they often emerge during periods of extreme volatility and steep Bitcoin drawdowns.
According to him, such conditions tend to mark significant lows that historically precede powerful Bitcoin recoveries. This sentiment aligns with a recent analysis by former BitMEX CEO Arthur Hayes. Hayes argued that the current Bitcoin price represents a major buying opportunity.
“We’re exactly there right now,” he said, describing the current market setup as one of the most compelling in recent years. The chart presented by Wedson displays 2 signals with blue and green tags. The blue signal indicates the current bottom in the BTC/Gold ratio, revealed through a normalized oscillator.
The oscillator, he said, is “basically screaming: time to sell gold and buy Bitcoin.” The green signal is even more powerful, appearing when both indicators align at their lows. Historically, this alignment has marked some of the best Bitcoin buying opportunities ever recorded against gold.
BTC/Gold Ratio Shows Shift in Institutional Investment
Wedson added that his analysis applies particularly to institutional investors that have been piling up gold in recent times. He urged them to reconsider their allocation strategies, arguing that Bitcoin now presents a stronger risk-reward profile. “If I were you, I’d take a close look at this chart,” he said.
The BTC/Gold ratio has historically acted as a barometer of investor confidence between the two assets. The long-running gold versus Bitcoin debate resurfaced recently after economist Peter Schiff claimed that Bitcoin has failed as digital gold. Binance’s CZ quickly rejected the assertion, defending Bitcoin’s long-term value and resilience.
When the ratio bottoms out, it often signals the end of Bitcoin’s underperformance and the start of a new bullish phase. Past examples include cycles where Bitcoin later surged to new all-time highs within months.
Bitcoin Trades in Deep Value Zone
Adding to the optimism, crypto outlet Milk Road said Bitcoin is now trading two standard deviations below its ideal range. According to them this is a sign that it could be entering a deep value zone.
The platform noted that such conditions have historically coincided with major accumulation phases, not market tops. “It might be one of the best buying opportunities for Bitcoin,” the post read, emphasizing that macro trends still point to a bull run continuing into 2026.
At press time, BTC price was around $106,925, up 0.42% in the last 24 hours, according to TradingView data. Despite recent volatility, the leading cryptocurrency remains up 14.6% year-to-date.
Also, it has gained nearly 59% over the past year. The publication reminded investors of a timeless principle in volatile markets: “Be greedy when others are fearful.”