The capital rotation narrative between gold and Bitcoin has started to be discussed again.

After an exceptional yearly performance in gold, the asset has recently entered a clear correction, pushing it back below its 180-day moving average.

This decline is partly linked to margin calls and position liquidations in the gold market.

On the other side, BTC continues to stabilize and consolidate, but it is still trading below its own 180-day moving average, currently estimated at $89,700.

For now, both assets appear to be following the same trend, which highlights an initial negative signal for capital rotation.

The signal calculation used here is intentionally simple and aims to capture broader trend dynamics :

— Positive: BTC trades above its 180-dma while gold trades below it.

— Negative: Both assets trade below their 180-dma.

This approach helps capture a clear divergence in trend between gold and BTC.

It is a simplified framework to imagine a potential capital rotation, which for now does not appear to be in place or remains too weak to significantly impact the Bitcoin market.

However, this remains an extrapolation, as it is very difficult to state with certainty that capital previously deployed in gold-related positions is now being redirected toward the Bitcoin market.

Written by Darkfost