Gold has just reached a historic peak at $4,342 per ounce, while Bitcoin experienced a flash crash at $101,000. Could this sharp divergence signal an imminent capital rotation? A crypto analyst decodes the 18-month cycle connecting these assets, illustrating why BTC may outshine gold in the coming months. Technical signals are already indicating the shift.
In mid-October, gold surpassed the symbolic threshold of $4,000 per ounce for the first time in history, before peaking at $4,342. This spectacular surge in the yellow metal occurred precisely when Bitcoin was undergoing a severe correction, briefly plunging to $101,000. This contrast didn’t escape Sykodelic, a crypto analyst known for his studies on asset correlation.
In his technical analysis, Sykodelic highlights an inverse correlation of approximately 18 months betweenhttps://investx.fr/en/learn/crypto/bitcoin/halving-date/ gold and Bitcoin. The pattern is clear: When gold enters an expansion phase, BTC corrects. Conversely, when gold stabilizes or retreats, Bitcoin initiates its rally. This cyclical dynamic has repeated with striking regularity in recent years.
The analyst’s chart superimposes the movements of both assets and reveals a perfectly readable alternating pattern. The current phase places gold in what resembles a classic top structure: A parabolic rise followed by an exhaustion phase. The current correction of the precious metal below its ATH confirms this technical hypothesis. Gold has fallen by 9.5% in one week, dropping to $3,930.
For Sykodelic, this top structure in gold signals the beginning of a new cycle for Bitcoin. BTC is now positioned at the lower level of a new bullish green channel identified on his chart. This technical configuration suggests that accumulation is underway before a potential major breakout.
Gold has just reached a historic peak before entering a correction phase, while Bitcoin seems to be initiating the opposite movement. According to analyst Sykodelic, an inverse correlation of 18 months between the two assets repeats with precision: When gold peaks, BTC begins a new bullish cycle. The analyst’s chart shows increasing buying momentum at the bottom of an ascending channel, suggesting accumulation before a potential major breakout.
Sykodelic anticipates that Bitcoin could exceed $140,000 by the end of 2026, supported by solid technical dynamics and increasing volumes. Currently, BTC is trading around $114,000, up 6% for the week, while gold has retreated by nearly 10%. This divergence between the two assets reflects, according to him, a beginning of capital rotation towards the crypto market, as investors redirect their positions to capture the next growth phase.
The key support at $110,000 remains a strategic level to monitor: Its maintenance would confirm the robustness of the current cycle. High volumes and structural consolidation of the market reinforce a medium-term bullish scenario. If the inverse correlation with gold continues, Bitcoin would enter a major expansion phase, potentially marking the beginning of a new cycle of crypto dominance.
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