Gold has successfully regained the $5,000 per ounce mark on the TradingView TVC chart, and this resurgence carries significant implications. As gold re-enters this five-figure range, Bitcoin is experiencing a relative decline, with the BTC/XAU ratio trending downward across both intraday and longer time frames.
On February 18th, spot gold was trading at approximately $5,005, marking a notable upward trend that gained momentum during U.S. trading hours. The five-minute chart reveals a pattern of higher peaks and consistent closes above short-term moving averages while momentum indicators remain strong without signs of fatigue. This technical setup suggests that further gains are likely as long as prices stay above the $4,980-$4,990 range.
The Bitcoin-to-Gold Ratio Reaches Weekly Lows
The ratio of Bitcoin to gold has decreased to around 13.46 from earlier levels exceeding 13.9 within the week. This indicates that one Bitcoin now purchases fewer ounces of gold compared to just days prior.
Examining the daily chart where gold is priced in Bitcoin shows a favorable outlook for bullion. The price remains above both medium- and long-term moving averages with any pullbacks being limited in scope. Even if Bitcoin maintains its value against the dollar, its purchasing power relative to gold is diminishing.
This divergence holds significant narrative importance; for some time now, Bitcoin has been positioned as a digital counterpart to gold—especially amid inflationary pressures or geopolitical tensions. When bullion strengthens while the BTC/XAU ratio declines, it reflects investors’ preference for traditional safe-haven assets.
In the near term, should gold continue its ascent towards new highs it could push this ratio down into the 13.3-13.4 range unless there’s a sharp uptick in Bitcoin’s performance. A reversal would necessitate either renewed investment inflows into crypto or a softening demand for gold.