Gold vs. Bitcoin: Bullish Breakouts Ahead as BTC Eyes $140K and XAUUSD Builds Momentum

Bitcoin (BTC) is gaining momentum as capital rotates into riskier assets and leverage builds across the market. Despite the stability in Bitcoin, Altcoin futures are also gaining interest, with Ethereum (ETH) breaking the $4,500 mark.

The chart below shows that the total crypto market capitalisation has broken the $4 trillion mark. However, the total market cap excluding Bitcoin and Ethereum shows a delayed breakout attempt. Moreover, Bitcoin’s dominance is dropping as the capital starts rotating into altcoins. This setup reflects the bullish momentum in the cryptocurrency market.

On the other hand, gold (XAUUSD) prices have been consolidating for the past four months and are looking for a breakout. The Bitcoin-to-Gold ratio suggests that both assets could initiate a surge and continue moving higher.

Bitcoin-to-Gold Ratio Eyes Breakout as Bullish Structure Strengthens

The long-term outlook for the Bitcoin-to-Gold ratio remains strongly bullish. The ratio has formed an ascending channel pattern over the past decade and is currently trading near a pivotal level around the 36 area.

A break above the 40 level would confirm the breakout from the neckline of an inverted head and shoulders pattern. This breakout could trigger a strong surge toward the upper resistance of the ascending channel.

A breakout above the 40 level would further validate bullish momentum in Bitcoin prices. Historically, when the Bitcoin-to-Gold ratio breaks higher, Bitcoin and gold tend to rally, reflecting broad strength across hard assets.

Bitcoin Builds Bullish Structure Above Support, Eyes $140K Target

Bitcoin Weekly Chart Signals Strong Bullish Base Above $100K

The weekly chart for Bitcoin shows a breakout above the key $115K level, confirming bullish price action. After the breakout, the price briefly corrected back to retest support before continuing higher. This move has created a bullish setup with an initial target near the $140K level.

The emergence of a cup and handle pattern, followed by a descending broadening wedge, further supports the view that Bitcoin prices are poised to move significantly higher from current levels.

Inverted Head and Shoulders Pattern Points to $140K Bitcoin Target

The weekly chart for Bitcoin shows that the price has broken above the $110,000 region, which served as the neckline of an inverted head and shoulders pattern. After the breakout, the price retraced to find support near the $110,000 level and has since continued to move higher.

This successful retest is considered a strong buying signal, suggesting that Bitcoin may now be positioned to advance toward the $140,000 area.

Daily Chart Highlights Key Support Zone for Next Rally

The bullish momentum in Bitcoin is also evident on the daily chart, which shows the formation of an ascending broadening wedge pattern. The substantial consolidation before the breakout above the $73,000 level, followed by a breakout above $105,000, has created a solid base for a potential move toward the $140,000 target.

The recent retracement toward the $114,000 area, along with support from the trendline, indicates a buying opportunity. This setup suggests that Bitcoin prices are likely to surge higher in the coming days.

Gold Consolidation Sets Stage for Breakout

Consolidation Tightens Between $3,250–$3,450 as Gold Builds for Breakout

The weekly chart for spot gold shows that the price is consolidating within a tight range between the $3,250–$3,450 region. A breakout from either side of this range will likely trigger the next significant move in the gold market. This consolidation phase has formed a strong bullish structure, suggesting that the next direction for gold is likely to be higher.

Moreover, this pattern shows similarity to the consolidations observed during April, May, June, and December 2024. A confirmed breakout above the $3,450–$3,500 region would signal the start of a new upward leg in gold prices.

Gold Bullish Pattern Targets Fresh Highs Above $3,500

The weekly chart for spot gold shows that the price has broken above the resistance around the $2,500 region, initiating a strong surge toward the $3,500 level. The current consolidation below $3,500 is due to overbought conditions. However, the price appears to be preparing for the next leg higher. A breakout above the $3,500 level would signal further upside in gold prices.