Bitcoin RSI Nears Three-Year Lows Against Gold — Why This Signal Could Mark a Major Turning Point

Bitcoin’s performance against gold is flashing a rare technical signal—one that has historically aligned with long-term market turning points. As the Bitcoin-to-gold ratio revisits a critical support level and momentum indicators sink into deeply oversold territory, the balance between digital and traditional stores of value is once again under scrutiny.

Bitcoin vs Gold Enters a Critical Support Zone

Bitcoin has declined to roughly 20 ounces of gold, a level that has repeatedly acted as a dividing line between bullish and bearish cycles. This zone represents a long-term equilibrium where capital rotation between risk assets and defensive hedges often shifts direction.
Gold’s resilience near all-time highs has weighed on Bitcoin in relative terms, particularly during the broader crypto market correction. However, historically, when Bitcoin reaches this valuation boundary against gold, market structure begins to change rather than deteriorate further.
This makes the current retest especially significant.

Bitcoin RSI Against Gold Reaches Extreme Oversold Levels

One of the most compelling signals comes from momentum data. The Bitcoin RSI against gold on the weekly timeframe has slipped below the 30 level, entering deeply oversold territory for the first time in nearly three years.
In previous market cycles, similar RSI conditions marked the exhaustion of downside pressure and preceded multi-month recovery phases. Oversold readings at major structural support tend to indicate imbalance rather than trend continuation.
From a historical perspective, this suggests that Bitcoin may be approaching relative undervaluation versus gold.

Is Bitcoin Undervalued While Gold Is Overextended?

The broader macro backdrop adds another layer to this analysis. Gold’s sustained strength reflects ongoing risk aversion and capital preservation flows. Bitcoin, on the other hand, has underperformed in relative terms, even as its long-term adoption and structural fundamentals remain intact.
From a relative-value perspective, markets often correct extremes by rotating capital from overextended assets into undervalued ones. The current divergence between gold strength and Bitcoin weakness suggests that such a rebalancing phase may be approaching.
This does not imply immediate price appreciation—but it does suggest shifting probabilities.

What a Breakdown or Hold Means for Bitcoin

The 20-ounce level remains pivotal. A sustained break below it would signal deeper relative weakness and could delay any meaningful recovery. However, consolidation at this zone—combined with improving momentum—would reinforce the thesis that Bitcoin is forming a relative bottom against gold.
In past cycles, Bitcoin’s strongest advances often began quietly, while sentiment remained cautious and momentum indicators were deeply oversold.

Is Bitcoin Undervalued While Gold Is Overextended?

CryptaBlocks Outlook: A High-Impact Inflection Point

From a strategic standpoint, the current Bitcoin-gold setup represents a high-impact inflection zone. While short-term volatility remains possible, the alignment of long-term support, extreme RSI conditions, and emerging bullish divergence points to asymmetric upside over downside for patient market participants.
At CryptaBlocks, we believe that when Bitcoin RSI against gold reaches such historically compressed levels, markets are closer to transition than continuation. As always, confirmation—not anticipation—remains key.