Emre Yumlu 
Bitcoin (BTC) surged toward $117,000 on Wednesday, reviving discussions about its long-standing correlation with gold. While the precious metal once again set fresh all-time highs, Bitcoin appeared determined to follow a similar trajectory.
Bitcoin Maintains Upward Momentum
BTC/USD recently climbed as high as $116,593, marking a new local top. Closing September with a 5.2% gain and recording a 6.3% increase for the third quarter, Bitcoin’s performance has fueled optimism that a new all-time high (ATH) could be within reach.
Crypto analyst and entrepreneur Ted Pillows pointed to $117,500 as a crucial resistance level. If Bitcoin manages to reclaim that threshold, he suggested, the market could quickly push toward uncharted territory.
Still, market depth data reveals pockets of liquidity building below current levels, creating short-term risks. Experts warn that clusters of leveraged long positions could trigger liquidations, potentially dragging prices downward before the next leg up.
Liquidity Risks Linger
Recent trading data shows that sudden liquidations continue to play a major role in Bitcoin’s volatility. In the past 24 hours alone, approximately $400 million worth of short positions across the crypto market were wiped out. Such moves highlight how leveraged trades can expose BTC to abrupt “fakeout” price swings despite its broader bullish momentum.
Gold Hits Another Record High
Bitcoin’s rally coincided with gold once again reaching uncharted highs. The metal surged to $3,895 per ounce, cementing its reputation as a safe-haven asset in uncertain markets.
Analysts have long suggested that Bitcoin could mirror gold’s performance. In recent weeks, the BTC/gold pair has shown signs of challenging key long-term resistance levels — a potential precursor to stronger alignment between the two assets.
However, Andre Dragosch, Head of Research at Bitwise, suggested that gold’s rally might be nearing exhaustion. He noted that excessive demand and herd behavior could lead to a short-term correction in the precious metal, potentially sparking a rotation of capital into risk assets like Bitcoin.
A Turning Point for Bitcoin?
With gold pushing into record territory, Bitcoin is reasserting itself as a digital store of value. The growing appeal of BTC alongside gold suggests that investors may be preparing for Bitcoin to test fresh highs in the weeks ahead.
While short-term liquidity pressures remain a concern, an increasing appetite for risk could propel Bitcoin into a stronger rally, potentially aligning it more closely with gold’s historic performance.
Whether this marks the start of Bitcoin’s next major breakout or a brief pause before greater volatility, the renewed correlation between gold and BTC will be one of the most important dynamics to watch.
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