Gold Crashes 10% From All-Time Highs – Analyst Says Bitcoin Is Next to Benefit

Gold just took a hit. After months of strength that have propelled the precious metal to fresh highs, the gold price has retreated sharply, now trading at around $4,852.66 after a decline of more than 10% from the highs. 

The decline has left traders wondering if the safe-haven trade is losing steam or just taking a breather. Michaël van de Poppe sees opportunity in the pullback. He noted on X that the gold price dropping to $4,850 is not bad. 

The gold monthly chart shows the bigger picture

Looking at the monthly chart shared by van de Poppe, the scale of gold’s multi-year rally becomes clear. 

From a historical perspective, the gold price has continued its upward trend since the 2015 low around $1,050. While the price declined in the 2018 consolidation phase, it rose in the 2020 pandemic peak phase, then broke out above $2,000 in 2024, and accelerated in 2025, reaching new highs above $5,400.

Currently, the gold price is pulling back from these highs for the first significant correction in several years. Prices have declined from highs above $5,400 to current levels near $4,852, a drop of approximately 10%.

From a technical perspective, the gold price is testing the $4,750-$4,800 region. This is a region that the gold price tested during its 2024 breakout. It is a significant area for gold. If gold can maintain prices above this region, it will maintain its long-term uptrend. If prices break below this region, it may target a pullback to the $4,000-$4,200 region.

What the pullback means for gold

Van de Poppe, in his analysis, believes that this recent weakness in the market is not indicative of the start of a new bear market, but rather just a normal mean-reversion bounce in the market, as Gold has run too far to the upside, which typically means that we will see a pullback to significant moving averages or trendlines.

The monthly chart for Gold shows that it is still well above all of its long-term averages, which means that we could see further downside before we see a significant level of support.

The RSI on this time frame has fallen from overbought, showing that momentum is decreasing. This often precedes consolidation phases that can last weeks or months before the next leg higher begins.

For gold bulls, the current pullback represents a test of conviction. Those who bought near the highs are now sitting on losses, while those who have been waiting for an entry point are watching key support levels. The $4,500 to $4,800 zone will be critical in determining whether this is a buying opportunity or the start of a deeper correction.

What comes next for gold

The gold price is at a crossroads. The long-term uptrend remains in place, but the chart indicates a pause or shakeout is necessary. 

If the price holds above $4,750, it will indicate that buyers are still entering the market at lower levels. A break below this support will set the stage for a test of the $4,200 to $4,500 levels.

CoinCodex’s 1-month gold price forecast places the asset at $4,352.68. This indicates that there will be further losses if the price continues to fall from the current levels around $4,850. The price will need to establish a base and create a support zone before the next rally begins.