List of Flash News about Gold Price Ratio
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2025-07-03 07:19 |
Bitcoin (BTC) vs. Gold Ratio Signals Bullish Breakout, But Dollar Index (DXY) 'Death Cross' Urges Trader Caution
According to @rovercrc, the Bitcoin-to-Gold price ratio (BTC/XAU) has signaled a significant bullish continuation after surging over 10% and breaking out from a bull flag pattern. This technical breakout suggests the ratio could rally towards 42.00, potentially exceeding its previous record high, an event historically driven by strong uptrends in Bitcoin's (BTC) price. However, traders should exercise caution due to a developing pattern in the U.S. Dollar Index (DXY). The DXY's weekly chart is approaching a 'death cross,' where the 50-week moving average crosses below the 200-week moving average. While typically a bearish indicator for the dollar, historical analysis shows this specific pattern has consistently acted as a 'bear trap,' marking bottoms for the DXY and preceding sharp rallies. Since a stronger dollar often creates headwinds for cryptocurrency prices, this historical tendency suggests that betting on continued dollar weakness to fuel the crypto bull run may be a risky strategy. |