BTC-to-Gold ratio breaks bullish pattern as global trade optimism shifts momentum toward crypto and equities
Bitcoin (BTC) continues to outshine gold (XAU) as the easing of U.S.–China trade tensions triggers a broader risk-on sentiment in global markets. According to recent technical analysis, the BTC-to-gold ratio has broken out of a bullish inverse head-and-shoulders pattern, signaling further upside for Bitcoin relative to the yellow metal.
Key Highlights:
BTC-to-Gold ratio breaks above inverse head-and-shoulders neckline at 32.00, targeting 35.00
Bitcoin up ~19% over the past 2 weeks vs. gold’s 8% decline
Technical breakout signals momentum shift from defensive to risk assets
U.S. and China agree to reduce tariffs, boosting macro optimism
Traders expect cryptocurrencies and equities to outperform safe-haven assets
BTC-to-Gold Ratio Chart Breakout Signals Bullish Continuation
The inverse head-and-shoulders pattern — a classic bullish reversal structure — indicates a trend shift in favor of Bitcoin. The breakout occurred last week after the ratio cleared trendline resistance at 32.00, per TradingView data.
Next target: 35.00, derived by adding the trough-to-neckline spread to the breakout point
Pattern suggests continued BTC outperformance vs. gold as market sentiment improves
“Bitcoin tends to play catch-up during gold rallies and then decouple to outperform once macro headwinds ease,”
analysts noted, referencing the 2020 and 2021 BTC/gold trends.
Bitcoin Gains, Gold Retreats Amid Trade Truce
Gold (XAU) peaked above $3,500 on April 22, then dropped 8.2% to $3,211
Bitcoin surged from under $88,000 to $104,000, a 19% gain in the same period
Safe-haven flows are reversing as investors rotate into high-beta assets
U.S.–China Tariff Rollback Lifts Global Sentiment
In a joint statement released in Geneva, the U.S. and China confirmed a 90-day tariff rollback:
China to reduce tariffs on U.S. goods from 125% → 10%
U.S. to cut tariffs on Chinese goods from 145% → 30%
“The tariff reduction could see a broader return to risk-on positioning,”
said Mena Theodorou, co-founder of Coinstash, in a statement to CoinDesk.
“Crypto and equities are poised to benefit from renewed investor confidence and global capital flows.”
Theodorou also cited a broader macroeconomic pivot, with the U.S. sealing trade deals with both China and the UK, and Russia–Ukraine ceasefire talks scheduled later this week, according to CoinDesk.
