Gold (Au) is bracing for a short squeeze as gold funds saw outflows of -$2.3 billion last week, marking the fourth consecutive weekly decline, with a 4-week average of -$2.0 billion. This figure is only lower than the 4-week average record of -$3.5 billion recorded in February. Meanwhile, Bitcoin ($BTC) prepares a confluence of short squeeze time frames of 3 months added to the candle range theory.
Gold outflows reach -$2.3 billion, second largest on record
According to sources, gold funds recorded net outflows of -$2.3 billion last week, marking the fourth consecutive week of withdrawals. That pushed the four-week average to around -$2.0 billion, the second-largest streak on record, only below the -$3.5 billion four-week average recorded in February.
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The largest US gold-backed ETF, SPDR Gold Shares ($GLD), has seen outflows of around -$2.2 billion so far this month. Year-to-date, $GLD has seen approximately -$8.1 billion in outflows, on track for the first annual withdrawal since 2023.
North America saw outflows of around -$1.1 billion in May as investors took profits after strong gains alongside limited price action and a rotation into technology. Asia also saw capital outflows, notably from China and India, as domestic stocks strengthened. Europe then counterbalanced, recording inflows of around $334 million over the same period.
Related: Bitcoin vs Gold debate intensifies according to analysts $BTC Forward rotation
Bitcoin builds 3-month short squeeze pattern
Bitcoin has traded in a volatile range for much of 2026, with first-quarter highs reaching around $97,000 to $98,000 ahead of broader market pressures, ETF outflows and geopolitical tensions. At the beginning of June, $BTC fell to a low around $59,000-60,000 before rebounding sharply towards $65,000-67,000.
Bitcoin is building a compelling longer-term short squeeze pattern on the three-month chart. Candle Range Theory (CRT) posits that after a liquidity raid below the low of the range, the price often reaches the opposite high, amplified by derivative positioning.
What’s Next for Bitcoin and Gold?
At the time of going to press, $BTC is trading at $67,210.76, up 4.83% in the last 24 hours. Recent liquidity raids to a low of $59,000 have paved the way for a reversal towards first-quarter highs near $97,000. With negative funding rates, massive short-term liquidations and ETF flows stabilizing after the US-Iran peace deal, $BTC expects a strong rally in the second half.
Meanwhile, gold faces tactical pressure in mid-2026, trading near $4,340 after retreating from January’s record high of $5,589 amid ETF outflows. JPMorgan forecasts $6,000 an ounce by the fourth quarter of 2026, driven by central bank buying, inflation and safe-haven demand. This decline provides a buying opportunity in gold’s long-term upcycle as macroeconomic risks persist.
Related: Bitcoin Price Prediction: Short-Term Squeeze Powers of $603 Million Pushes Towards $96,000 Resistance
