- Bitcoin risks a significant drop as the Bitcoin-to-Gold ratio hits resistance.
- Key levels near $102,000 could trigger a decline toward $65,000–$69,000.
- A breakout above $102,000 may propel Bitcoin toward $150,000, defying bearish signals.
Bitcoin’s impressive surge in 2024 may soon face a major correction. Analysts warn of a potential 35% decline as key market indicators signal trouble. The Bitcoin-to-Gold ratio has entered a historically significant range. This level has often marked market tops in previous cycles. Traders should closely monitor resistance levels that could trigger sharp price drops.
Bitcoin-to-Gold Ratio Indicates Bearish Outlook
The Bitcoin-to-Gold ratio has climbed into the critical resistance range of 34–37. Experts, including Peter Brandt, point out that this level has previously led to sharp corrections. For example, Bitcoin’s $69,000 peak in November 2021 was followed by a 75% decline. The weekly RSI for the ratio has also crossed 70, signaling overbought conditions. A similar pattern appeared in March 2024 when Bitcoin hit $74,000 before dropping 33%.
These trends suggest that the current rally may be nearing exhaustion. Bitcoin is also facing strong resistance around $102,000. This level aligns with the 1.618 Fibonacci retracement, a key technical marker. If Bitcoin falls below this threshold, prices could drop toward the 50-week EMA, which lies in the $65,000–$69,000 range.
Will Bitcoin Break the Pattern?
Although bearish signals persist, Bitcoin could still break above $102,000. If this happens, prices could soar toward $150,000, reversing the current downward trend. Such a rally would push the Bitcoin-to-Gold ratio past its critical resistance and revive bullish momentum.
Bitcoin is at a crucial point, with both risk and opportunity ahead. While past patterns suggest caution, traders remain optimistic about a possible breakout. Key resistance levels will be crucial in determining whether Bitcoin corrects or continues its upward path. The next few weeks will likely shape Bitcoin’s direction in the coming months.
