Bitcoin taps $110K as BTC price diverges from 5% gold correction

💡 DMK Insight

Bitcoin’s bounce back to $110,000 is more than just a number—it’s a critical test of market sentiment.

After hitting that CME futures gap, we’re seeing a classic case of support and resistance play out. Traders need to keep an eye on the $112,000 level; if it breaks, we could see a bullish run, but if it fails, a retreat back towards $100,000 is likely. Meanwhile, gold’s potential double top at around $1,950 raises questions about safe-haven demand. If Bitcoin continues to gain while gold falters, it could signal a shift in investor preferences, especially with inflation concerns still looming.

But here’s the flip side: if Bitcoin’s rally is purely technical and not backed by strong fundamentals, we might see a quick reversal. Watch for volatility spikes in the coming days, especially around any macroeconomic news or Fed announcements. The real story is how these two assets interact; a divergence could lead to significant trading opportunities. Keep an eye on the RSI and MACD indicators for signs of overbought conditions in Bitcoin, which could signal a pullback soon.