The price action of $GOLD recently showed a sharp drop following Bitcoin's strong upward movement, reflecting a shift in capital from gold to crypto. However, gold has since formed a descending triangle pattern on the 1-hour timeframe, typically signaling potential bearish continuation.

Despite that, price has now broken out from the descending trendline, which could invalidate the bearish setup and instead indicate the beginning of a bullish move. If momentum continues, price may target the next resistance levels around $2,367.05 and $2,374.57.

However, if the breakout fails and price gets rejected at resistance, it might indicate a fakeout, potentially dragging price lower to fill the liquidity left behind. A successful retest of the breakout level could confirm a stronger upward continuation.