Indicator Overview

The BTC vs. Gold Relative Strength indicator is a sophisticated momentum model designed to track the capital tug-of-war between "Digital Gold" (Bitcoin) and "Analog Gold" (Physical Gold). By calculating the ratio between BTC and the Gold ETF (GLD), this tool strips away the dollar-denominated noise to reveal which asset is truly serving as the market's preferred store of value.

The script calculates this ratio, processes it through an adapted Relative Strength Index (RSI), and applies a smoothing filter. This creates a refined Strength Index that isolates regimes where Bitcoin is outperforming the oldest safe-haven asset in human history. The amber-to-gold gradient visualises these shifts in global safe-haven preference, helping investors identify when Bitcoin is acting as a superior hedge against currency debasement and when capital is rotating back into the stability of precious metals.

How To Use

Traders and macro analysts can use this indicator to determine the current dominance of digital vs. traditional sound money.

• Momentum Gradient: The line transitions through a deep-to-vibrant gold palette. Dark Amber segments indicate periods where Bitcoin is neutral or lagging behind Gold’s performance. Bright Gold segments signal periods of parabolic outperformance, where Bitcoin is capturing a larger share of the global store-of-value market.

• The 50-Line Pivot: A Strength Index reading above the 50-level indicates a regime of Bitcoin dominance. Sustained movement above 50 suggests high-conviction institutional trust in digital scarcity. Conversely, a dip below 50 often signals a risk-off environment where the lower volatility of gold is more attractive to the market.

• Visual Benchmark: By plotting Gold (dashed white line) against Bitcoin (solid white line), you can visually track Correlative Decoupling. If Gold is rising while the Strength Index is falling, it suggests that Bitcoin is failing to capture traditional safe-haven flows during periods of geopolitical or economic uncertainty.