BTC and Gold Are Showing Similar Price Action. What's Coming Next?

[Olamidetechie]

BTC and Gold are giving me the same vibe right now. Both seem to be setting up for a pullback before potentially moving further downward. Although most CFD markets are currently closed and will reopen tomorrow, I have been studying the XAU chart and wondering whether we could see a pullback toward $3,980 before another leg down.  I tested this same strategy several times on the 4 hour timeframe last week, and it worked out well, as you can see from the previous setups on the chart.

On the news side, physical demand is also worth watching. Seasonal demand in key Asian markets, particularly India and China, continues to absorb pullbacks, helping to stabilise spot gold prices during sharp declines. For now, I am looking to take my third trade on gold  on Bitget CFD. I normally don't trade the same asset three times in a row, so this would be my first time attempting a rerun trade on XAU.

Hopefully, I can make it three wins in a row! My planned entry is around $3,980, with a TP around $3,879, targeting a 1:2 risk to reward ratio while still having access to the four CFD account modes, including the newly introduced Standard+, which offers zero fixed trading commission with unified markup pricing.

Now, the big question is whether gold will give me that pullback before continuing downward. Would you take this third setup, or would you wait for further confirmation before entering?

[BitMaxz]

Now, the big question is whether gold will give me that pullback before continuing downward. Would you take this third setup, or would you wait for further confirmation before entering?

I think I missed that thing I recently traded near/USDT last Friday, and grab the big pullback for short entry and successfully trail-stop after 5 hours holding the position.

About the current setup, I don't just immediately enter the market; I always wait for pullbacks as confirmation. So I suggest waiting, retesting, and looking closely at the frequency. I mean, how strong the movement is when the price touches that resistance area because it might go much further above your resistance area? That is why I think you also need to do a top-down analysis and make a trendline from previous highs; it might retest that area instead of that resistance level from your  setup.

[Moreno233]

Everything that is pegged to the US dollar as the base is bound to exhibit similar price action sometimes especially when there is new release that affects the US dollar or the market in general. That is to say that whatever happens to the US dollar, will affect everything that is paired with it in the trading market which is why BTCUSD and XAUUSD will have similar price action sometimes unless there is a news on gold or Bitcoin that has not connection to the US dollar.

From technical analysis, gold and Bitcoin as well as other currencies pegged to the dollar experienced serious drop in price, so it is expected that there will be some correction but we don't know how deep the correction will go before the market decide on what to do next.

[Alphakilo]

Now, the big question is whether gold will give me that pullback before continuing downward. Would you take this third setup, or would you wait for further confirmation before entering?

I would rather wait for a confirmation instead of entering the market blindly mostly when the limit order is at $3,980.
Instead the best way in for me in this case would be to keep my eyes peeled out for a 4hr timeframe where there's momentum slowdown for price action and momentum signals that prove buyers are losing steam and sellers are stepping back in.
This is just to effectively and accurately predict that the setup is right before I have the mind to throw my capital into the market as an entering and execution strategy.

[shinratensei_]

Yeah a little pullback along the way before downturn for Gold but I feel different with Bitcoin somehow, the chart is quite different and I personally don't feel the same vibe between the two. XAUUSD chart be looking like it's about to have imminent bearish season while BTC is having bounce from support, basically there's no confirmation of bearish market until it broke the $76000 support while Gold is already breaking it and about to spiral, just my 2 cents though. Since US stock market has been a red sea these past few days, I kind of thinking that the reason gold may have worse days ahead is because rising yield and USD getting stronger unless gold could hold $3800 floor of course. I mean, Gold RSI is at multi year lows which might indicate overselling and probability of a pullback, so you're not wrong.