Gold: Bitcoin’s Implosion Likely to Reflect on the Yellow Metal Soon

Published 11/10/2025, 10:40
Updated 13/10/2025, 08:02

After reviewing the technical formations in the daily charts of both the gold futures and Bitcoin, as one of the largest cryptocurrency by market value, extended loses up to 8.4% as of 17:20 ET (2120 GMT) on Friday when the U.S. President Donald Trump said he was raising tariffs on Chinese exports to the U.S. to 100% and imposing export controls on “any and all critical software” in a reprisal to recently announced export limits by China on rare earth minerals critical and tech and other manufacturing.

The similarity between recent moves in both Bitcoin and gold futures suggests that the single-day fall seen in BTC/USD could also occur in gold futures next week.
BTC/USD Daily Chart

Undoubtedly, on Friday, both of them were trading near their recently tested peaks and this fall was seen in Bitcoin price while it was attempting to cross the recently tested high at $125594 on Oct. 5, 2025, followed by some futile attempts, seen on Oct. 7 up to $125125 while on Oct. 8 and 9, futile attempts faced stiff resistance at $123229; and on Oct. 10, bitcoin could only test a high at $ 122592, just below the significant resistance at $123229, from where a steep fall started tested the day’s low at $103828, soon after the announcement of Trump’s move on China tariff at 08:56 PM on 10/10/2025.
Gold Futures Daily Chart

On the other hand, gold futures test a record peak on Oct. 8, 2025 at $4082, followed by a futile attempt up to $4077 on Oct. 9 that experienced the day’s low at $3958 before closing the day at $3973.13, and on Oct. 10, gold futures could tested a high at $4038.60 only and a low at $3961.20 before closing the day at $4000.40, just below the immediate resistance at $4000.11 amid growing concerns over the bearish pressure at $4000.

If gold futures begin the week with a gap-up and approach the recent peak, a selling spree could occur at the immediate resistance at $4072, similar to Bitcoin’s drop after the U.S. extended tariffs last Friday.

Undoubtedly, Bitcoin has just witnessed its most violent shakeout ever. In a stunning 24-hour period, more than $19 billion in leveraged positions were liquidated, crashing months of gains and leaving traders worldwide reeling.

The current rally has driven precious metals to record highs, fuelled by expectations of U.S. interest rate cuts, inflows into ETFs, and a weakening dollar. Overleveraged positions in gold ETFs now face risks similar to Bitcoin’s recent sharp decline.

I find that the immediate reason behind the overly stretched price of gold is hefty inflows into gold ETFs could turn into a cause of this bubble bust, while U.S. President Donald Trump has already triggered the button by his recently announced stretched tariff on China.

I anticipate that if the gold futures start the upcoming week with a gap-down opening below the immediate support at the 20 DMA at $3952.43, steep slide could push the futures to test the next significant support at the 20 DMA at $3842 where a breakdown could futures to test the next significant support at the 50 DMA at $3633 from where a reversal can be see1n.

Undoubtedly, China could react negatively to this statement by President Trump. I find that trade negotiations via social media can be very disruptive to markets, but a lot can change quickly. By setting a November 1st implementation date for tariffs, it leaves enough room to have people actually talk with each other about the issues instead of just lobbing press statements back and forth. Downside risks to growth and upside risks to inflation are now higher than they were just 12 hours ago, but those risks don’t have to become reality.

Disclaimer: Readers are advised to take any position in gold or bitcoin at their own risk, as this analysis is based only on observations. 

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