Gold’s Buy Climax Is Playing Out, And Bitcoin Could Pay The Price

The recent shift in the gold market is now impacting how experts view the future of Bitcoin. Analyst Joao Wedson highlighted a pattern earlier this year where gold peaks first, leading to volatility, followed by a sharp reaction from Bitcoin, and eventually, a rotation of liquidity back into Bitcoin.

Gold’s Warning Sign

Gold hit an all-time high of $5,589 per ounce in late January, sparking massive enthusiasm among retail and institutional investors. However, analyst Joao Wedson identified this peak as a buy climax driven by euphoria.

A chart shared by Joao Wedson illustrates this moment, showing a BC near the top of gold’s price before a significant drop and a failed breakout attempt in early March.

As of March 22, 2026, gold is trading at $4,493 per ounce, down about 3.23% from the previous day’s rate of $4,643. This marks an 18.5% decline in less than two months, with the recent sell-off being the worst since 1983.

Gold Buy Climax. Source: @joao_wedson On X

Impact on Bitcoin

While Bitcoin has lagged behind gold in performance this year, both assets have shown correlation during periods of decline. Wedson’s analysis suggests that Bitcoin reacts more sharply during the latter stages of gold’s weakness.

Bitcoin doesn’t lead during gold’s distribution phase but responds to it with significant volatility. This poses increased risk for Bitcoin during the final stages of gold’s decline.

According to Wedson, the potential for a Bitcoin rally emerges when gold’s distribution phase nears completion and capital starts flowing back into risk assets like Bitcoin. However, this transition may take months, with the full impact possibly not visible until late 2026.

At present, Bitcoin is trading at $68,796, down 2.6% in the last 24 hours. Recent trends indicate Bitcoin starting to outperform gold, with the BTC/Gold pair on TradingView showing a 3.68% increase in the past day.

BITCOIN/GOLD. Source: TradingView

Image source: Unsplash, chart source: TradingView

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