For six straight weeks, Bitcoin was losing the battle against gold. That streak has now reversed — and it has held for two weeks running, with Bitcoin up more than 4% against the precious metal this week alone.

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A Parallel Decline Reshapes The Debate

The timing of that rebound is striking, given that both assets are deep in correction territory right now. Bitcoin dropped from a weekly high of $76,000 to below $70,000, a slide of roughly 8.7%.

Gold fared no better, shedding 8.5% in the same period, pushing the price down to around $4,616 per ounce — well below the psychologically watched $5,000 mark. Gold has now posted two straight weeks of losses and is on pace for a third, its worst such run since last November.

The back-to-back selloffs have reignited a long-running argument in crypto circles: when gold falls, does the money eventually find its way into Bitcoin?

Benjamin Cowen, CEO of Into The Cryptoverse, says no. He has held that view since at least late January, when gold was still riding high and crypto bulls were counting on a rotation trade. He didn’t buy it then. He still doesn’t.

Cowen’s Case, And What It’s Based On

Cowen’s reasoning draws on something that already played out inside the crypto market. When Bitcoin ran up in prior cycles, many traders expected capital to eventually shift from BTC into smaller altcoins, sparking what the market calls “altcoin season.”

According to Cowen, that rotation never really materialized in any meaningful way. He sees the gold-to-Bitcoin narrative following the same pattern.

Back on January 28, as gold was trading near its all-time high of $5,597 — a level it hit on January 29 — Cowen posted publicly that no rotation from metals to crypto should be expected.

One day after that post, gold dropped 4% and Bitcoin fell by the same amount, almost to the dollar. That co-movement drew attention at the time. The events of this week have brought the argument back to the surface.

Not everyone agrees with him. A section of the market has long argued that precious metals and crypto serve different investor profiles, and that a pullback in one naturally redirects money toward the other. So far this cycle, that has not played out in the data.

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The BTC/Gold Ratio Tells A Different Story

What complicates the “no rotation” argument is the BTC/gold ratio itself. Even as both assets fall in dollar terms, Bitcoin has been recovering ground relative to gold after bottoming near 12 ounces of gold per BTC earlier this month.

It has since climbed back to around 15 ounces. That figure still sits well below the middle Bollinger Band at 18 and far below the upper band at 26, but the direction has shifted.

Featured image from Unsplash, chart from TradingView

Bitcoin price started a recovery wave from the $65,500 zone. BTC is now consolidating and might aim for more gains above $69,500.

• Bitcoin started a decent recovery wave above the $67,500 zone.
• The price is trading above $68,000 and the 100 hourly simple moving average.
• There is a key bearish trend line forming with resistance at $69,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might dip again if it trades below the $68,500 and $68,000 levels.

Bitcoin Price Starts Recovery Wave

Bitcoin price extended its decline and traded below the $66,500 level. BTC tested the $65,500 support zone before the bulls emerged. A low was formed at $65,646, and the price recently started a recovery wave.

The price climbed above the $67,200 and $67,500 resistance levels. The bulls pushed the price above the 23.6% Fib retracement level of the downward move from the $74,062 swing high to the $65,646 low. However, the bears are still active below $70,000.

There is also a key bearish trend line forming with resistance at $69,250 on the hourly chart of the BTC/USD pair. Bitcoin is now trading above $68,500 and the 100 hourly simple moving average.

If the price remains stable above $67,500, it could attempt a fresh increase. Immediate resistance is near the $69,250 level. The first key resistance is near the $69,600 level and the 50% Fib retracement level of the downward move from the $74,062 swing high to the $65,646 low.

A close above the $69,600 resistance might send the price further higher. In the stated case, the price could rise and test the $70,500 resistance. Any more gains might send the price toward the $72,000 level. The next barrier for the bulls could be $72,650.

Another Decline In BTC?

If Bitcoin fails to rise above the $69,250 resistance zone, it could start another decline. Immediate support is near the $68,500 level. The first major support is near the $68,000 level.

The next support is now near the $67,500 zone. Any more losses might send the price toward the $66,650 support in the near term. The main support now sits at $65,500, below which BTC might struggle to recover in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $68,000, followed by $67,500.

Major Resistance Levels – $69,250 and $69,850.