A sudden conversion of Gold it is starting to have an impact how some market watchers see Bitcoin’s next move. In a market note shared on X, certified analyst Joao Wedson noted that the relationship between the two assets appears in accordance with the sequence he mentioned earlier this year where gold rises first, volatility explodes, Bitcoin reacts soon after, and only later when money starts to turn back to Bitcoin.
Gold’s Euphoria Peak Was a Warning Sign
Retail and institutional enthusiasm peaked when gold hit an all-time high of $5,589 per ounce in late January. However, crypto analyst Joao Wedson flagged the period as a buying peak that included a sharp price increase caused by euphoria.
Attached is the chart Posted by Joao Wedson shows that period accurately, marking BC near gold’s peak before a violent decline, then a recent test in early March that failed to produce a lasting breakout above the January peak.
As of today, Sunday, March 22, 2026, gold is trading at $4,493 an ounce, which is a decrease of $150 (about -3.23%) from yesterday’s price of $4,643. On March 19, gold was trading at $4,551, down about 18.5% in less than two months, and the sell-off reached seven consecutive sessions, worst week for price action since 1983.
Gold Buy Climax. Source: @joao_wedson On X
How Does This Affect Bitcoin?
Bitcoin you have done very badly compared to gold this year, but both commodities were there to coordinate during periods of decline. The upper half of Wedson’s chart draws a straight line from gold’s reversal to Bitcoin’s collapse. His point is not that both assets move up during the crash, but that Bitcoin tends to react suddenly. during the final stages of the weakness of gold.
Bitcoin does not lead during the gold distribution phase, but it reacts to it and reacts aggressively. The speed of Bitcoin’s price movement means that the final stages of the current gold decline, which may not be over yet, carry the greatest risk for the leading cryptocurrency.
According to the analyst, the real opportunity for the rally of Bitcoin begins only when the phase of distribution of gold is close to the end and the currency begins to turn into a dangerous asset like Bitcoin. However, that process will not be of immediate help. In his view, this change may take months, and the full effect may not be seen until the end of 2026.
At the time of writing, Bitcoin is trading at $68,796, down 2.6% in the last 24 hours. However, recent price action is indicative Bitcoin is starting to surpass goldand the BTC/Gold pair on TradingView is up 3.68% in the last 24 hours.
BITCIN/GOLD. Source: TradingView
Featured image from Unsplash, chart from TradingView
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