Is Bitcoin Ready to Replace Gold? BTC Targets $100K Amid Improving US-China Sentiment

The Bitcoin price (BTC) has exceeded major resistance levels in the crypto market while gold (XAU/USD) encounters difficulties after achieving its peak at $3,500. Improving US-China relations leads to declining anxiety about safe havens, thus driving investors to choose Bitcoin over gold as their preferred value store. Bitcoin can extend its current price increase beyond gold for several months. 

Why is Bitcoin Surging While Gold Faces a Reversal?

The Bitcoin price exceeded $95,000 before retracing to $94,771, demonstrating a significant improvement in investor opinion. Gold experienced a price reversal when it reached the essential resistance level of $3,500, currently at $3,311. The difference between Bitcoin and gold price movements reveals that investors transfer their assets to Bitcoin. 

Image 1- CN Business  Confidence, provided by TradingEconomics, April 30, 2025.

US-China relations are improving, and a better economic forecast drives this exchange of investor interest. Gold historically experiences growth during geopolitical instability and periods of elevated inflation and market instability. Economic improvement, combined with less trade war anxiety, has reduced the need for people to maintain gold as an economic protection asset. 

XAU/BTC Ratio: Bitcoin Set For a Bullish Rally

Analysis shows that the XAU/BTC ratio behaves oppositely to the BTC/XAU value. Each moment when the gold/Bitcoin ratio achieves its highest point has proven to be the beginning of Bitcoin price recovery. Three significant periods in 2015, 2019, and 2022 identify how Bitcoin formed its lowest values when the ratio hit ATH.

Chart 1- XAU/BTC 1-day chart, provided by Emmaculate, published on TradingView, April 30, 2025

Technical analysis considers the BTC/XAU ratio breakout a significant indicator. The resistance level breakout pattern in the BTC/XAU ratio has led to Bitcoin delivering superior returns than gold in past instances. Bitcoin shows potential for a major market boost as it surpassed its long-term resistance levels in a recent breakout.

Chart 2- BTC/XAU 1-day chart, provided by Emmaculate, published on TradingView, April 30, 2025.

A rising BTC/XAU ratio will enable Bitcoin to pull in increased financial capital while demonstrating stronger performance than gold. The positive market momentum indicates Bitcoin may challenge fresh resistance barriers on its way to a potential price rise toward the $100,000 level. Based on past market behaviour, Bitcoin faces the potential for significant expansion during the coming months when the BTC/XAU ratio performs positively.

Is Bitcoin Set for a Major Bull Run Toward $100,000 in May?

The Bitcoin price boasts a splendid bullish picture. It broke above the $95K mark before slightly retracing to $94,771 in the past 24 hours. BTC is still up 0.17% and 15% in the past month, as investors and analysts foresee a potential rally towards $100K.  

Meanwhile, the BTC bulls have flipped above the key moving averages, including the 50-day and 200-day MA, tilting the odds towards the buyers. BTC could spike upward toward $97K if the key support level holds. Intense buying activities will see the leading atcoin reclaim the $100K mark in the first week of May.

Chart 3- BTC/USD 1-day chart, provided by Emmaculate, published on TradingView, April 30, 2025.

A quick look at the Relative Strength Index shows it around 66, indicating bullish momentum. If the bulls keep adding BTC to their portfolios, the RSI could continue its upward movement, potentially reaching the 70-overbought region.

However, if the recent tempo in the BTC market slows down, BTC may pull back or consolidate. In such a case, the $92,761 support area will be the first safety net for the BTC bulls. Intense early profit booking may cause further downside towards $91,650 or $90K. 

What Next for Gold as It Retraces From $3500 Highs?

When the long-term resistance barrier at $2,075 was breached in early 2024, higher levels followed in the Gold price. Gold experienced rapid price growth after breaking through resistance at $2,075 until reaching multiple brief stabilization phases before each new surge. The price experienced a new peak at $3,500, which developed a key reversal pattern.

Chart 4- XAU/USD 1-day chart, provided by Emmaculate, published on TradingView, April 30, 2025.

Two essential support areas can be found at $3,000 and $2,800 because these levels proved important during past periods of consolidation. Analysis shows that the price may form a consolidation pattern before starting the next upward movement towards reclaiming $3,500. Meanwhile, the ongoing upward movement of the BTC/XAU ratio indicates a bright future for Bitcoin, which could pave the way for digital gold to become the preferred asset.