Key Points:
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Bitcoin is struggling again as gold retakes the limelight with week-to-date gains of nearly 5%.
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Bitcoin’s correlation with gold is under scrutiny amid ongoing macroeconomic shifts.
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Traders see a short-term slump amid a wider BTC price rebound.
As of May 6, Bitcoin (BTC) is approaching fresh month-to-date lows, reflecting a struggle in the cryptocurrency markets that seems directionless while gold makes a pronounced comeback.
Analysis: Bitcoin, Crypto “Largely Directionless”
According to data from Cointelegraph Markets Pro and TradingView, Bitcoin price momentum has stalled around the $95,000 mark prior to the latest daily close, inching closer to the critical yearly open support level at $93,500.
In stark contrast, gold (XAU/USD) was up 1.5% on the same day, accumulating week-to-date gains of 4.4%. This shift highlights a clear performance gap as gold has once more taken the spotlight.
Trading firm QCP Capital noted in its latest bulletin to Telegram channel subscribers that crypto implied volatility remains suppressed as the market continues feeling directionless.
Amidst various swings in macroeconomic factors, the dollar has remained lower while emerging market currencies have seen a surge. This macro shift coincides with a notable rise in gold prices, as investors lean into the weaker dollar narrative and price in geopolitical risk premia.
Interestingly, Bitcoin has yet to follow gold’s rally, leading QCP to predict an increasingly binary next phase for BTC, suggesting it may either decouple from gold’s performance or reconnect with broader risk proxies.
Meanwhile, The Kobeissi Letter provided a contrasting analysis, noting a discernible correlation between gold and Bitcoin in recent times, as both assets benefitted from the same market dynamics.
“The flight to decentralized and inflation-protected assets is strong. Keep watching this trend.”
MACD Gives BTC Bulls Pause for Thought
#btc weekly MACD about to cross bullishly from a position of strength… pic.twitter.com/x2JjK9rHNW
— dave the wave🌊🌓 (@davthewave) May 6, 2025
The sentiments around Bitcoin’s trend highlight the importance of the impending Federal Open Market Committee (FOMC) meeting and Jerome Powell’s speech, scheduled for May 7, where potential interest rate adjustments will be discussed.
Keith Alan, co-founder of Material Indicators, expressed skepticism regarding the yearly open’s ability to hold as support, anticipating possible price movements targeting the $91.6k level.
“While I’m prepared for a wick to the $88k – $90k range, I think the $91.6k level around the 21 MA is a likely target this week.”
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.
