Bitcoin Surges 3% as Gold Drops 8%

Bitcoin bulls are gearing up for a significant resistance test at the $97,000 mark as gold prices have dipped by 8% from their recent highs. This development comes as Bitcoin has been making relentless higher highs on lower timeframes, attempting to punish shorters in the process. The cryptocurrency gained 3% on May 1, marking a new month with shorts struggling to keep the price in check.

The recent price action in Bitcoin is notable as it coincides with a decline in gold prices. Gold, traditionally seen as a safe-haven asset, has experienced a significant drop, which could be influencing investor sentiment towards Bitcoin. The dip in gold prices may be redirecting some investment flows towards Bitcoin, given its status as a digital alternative to traditional safe-haven assets.

An accompanying chart showed the S&P 500 approaching monthly highs, delivering a V-shaped recovery. The optimistic May open meanwhile came despite the macroeconomic outlook remaining uncertain as recession fears returned on the back of poor US GDP data. With the Federal Reserve under pressure to cut interest rates, various crypto market commentators saw the chance for a stronger comeback in the coming months.

“Bad macroeconomic data came along, through which the pressure on the FED is increasing to start the money printer again,” Crypto trader, analyst and entrepreneur Michaël van de Poppe told X followers in part of a post on the day. “Ultimately, good for risk-on assets. Short-term, bad for Gold.”

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reaching $96,955 on Bitstamp, its highest since Feb. 22. Increasingly close to six figures, Bitcoin rose with US stocks at the Wall Street open as Microsoft gained 10% to become the world’s highest-valued public company. Reacting, popular trader Daan Crypto Trades suggested that stocks may be on the cusp of a return to sustained bullish trajectory.

“Stocks trade at a key area here,” he wrote in ongoing X analysis. “I think the general rule is that if stocks do trade back above the .618 Fibonacci retracement after a big drop, the bottom is considered to be in.”

Fellow trader Skew watched exchange order book liquidity for signs of short-term moves to come. The latest data from monitoring resource CoinGlass showed ask liquidity thickening around $97,000 at the time of writing.

XAU/USD was down more than 8% versus its all-time highs seen in April, with oil also suffering. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.