Bitcoin is closing in on a major support zone following a market indicator signal that BTC is trading at an oversold level relative to gold.
Analysts are now speculating that BTC may be preparing for another strong recovery, which is high because of the similarity to previous cycles that followed extreme readings.
The Bitcoin/Gold Oversold Oscillator has dropped to its lowest level ever. The indicator shows Bitcoin’s performance against gold using a momentum-based model and highlights periods when Bitcoin becomes significantly undervalued relative to the precious metal.
According to the chart, BTC has reached the oversold level in the indicator’s reading, indicating that the current market weakness may be losing momentum.
In the past, the indicator has shown a similar move, pushing Bitcoin up nearly 660%. However, the reading shows that Bitcoin has underperformed against gold in recent months.
Gold has climbed to record highs, and Bitcoin has been struggling to maintain bullish momentum despite growing institutional adoption and continued spot ETF inflows.
Bitcoin Price Shows a Strong Bullish Momentum
The BTCUSD pair is trading near the $64000 high after the bulls pushed the price past $61,700 before retracing slightly.
The price is trading within the ascending channel on the 15-minute chart, indicating that buyers are still in control despite the pullback.
There are several order blocks below the current price, between the $63,200 and $62,500 range. These areas provide support for Bitcoin to continue moving higher before retracing.
As long as the price stays above these zones and remains inside the ascending channel, the short-term bullish trend is likely to remain intact.
BTCUSD Chart Analysis by Tradingview
Currently, the upper boundary of the ascending channel acts as the next target. A push above $64,000 could give buyers enough force to challenge the resistance around $64,650.
A successful breakout above this level would strengthen bullish momentum and attract buying pressure.
On the downside, if the bears push the price below $63,200, support could trigger a deeper bearish correction toward the $62,500 support zone.
Further push will lead Bitcoin to fall to the previous support level at $61,700. For now, Buyers are still at an advantage while Bitcoin trades within the rising channel.
Update, September 29, 2026: That oversold setup has now played out. Bitcoin outperformed gold on September 29 as the 10-year yield surged past 5.2%, holding above $84,000 while gold tumbled nearly 4%.
