This rebound from the long-term support at 13 suggests the ratio will likely continue to rally higher. This rally in the ratio indicates that the Bitcoin price will likely remain strong in the short term.
On the other hand, the ratio also shows extremely oversold levels, which indicates that rebound in Bitcoin prices is likely. However, a break below 13 will indicate further downside in Bitcoin below $50,000.
Final Words
Gold and Bitcoin react differently to rising geopolitical tensions in the Middle East. The geopolitical tensions increase safe haven demand, which directly hits gold. However, Bitcoin stabilises after deep correction and shows signs of recovery from strong long term support.
From the technical perspective, the Bitcoin price is recovering from the strong support zone of $50,000-$60,000. A confirmed break above $75,000 will suggest a rally towards $100,000. Despite these technical data, the geopolitical uncertainty may trigger sharp moves in both assets. However, the gold remains the safer hedge as the Middle East crisis are far from over.
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