Hello friends, how are you all? I hope you are all well and healthy.
Today, I want to discuss the current state of the market in a little more depth. Looking at the charts over the past few days, a strange contradiction is noticeable. On the one hand, Bitcoin seems to have lost its momentum, while on the other hand, Gold and Silver are breaking records one after another. Let's analyze what is actually happening in the market and what we can expect in the coming days.
Those of you who trade regularly must have noticed that Bitcoin seems to be stuck below $90,000. In trading terms, what we call a 'sideways movement' or 'choppy market', Bitcoin is going through exactly that situation right now. While gold is approaching $5,000 per ounce, Bitcoin is far from a breakout, but is feeling downward pressure.
Market sentiment and data analysis show that the $93,500 level is quite important for Bitcoin. According to the analysis of famous trader Crypto tonyy, Bitcoin may correct once downwards, i.e., in the $75,000 - $70,000 zone, before targeting $100,000. However, it may first make a short-term jump to $93,000 to fill the CME futures gap.
According to another well-known analyst, michaël van de Poppe, breaking the $91,000 level is the most important thing for Bitcoin now. If it can break, then we will see a big move. And if it loses support at $86,800, Bitcoin could test lower. Looking at the liquidation map, it is clear that there is a lot of liquidation accumulated in the $88,000 and $90,000 zones.
Gold's target is $23,000? Incredible but possible!
When Bitcoin is in decline, the gold chart is a sight to behold. The price of gold is already close to $5,000, and the Relative Strength Index (RSI) is in the most 'overbought' or overbought zone since 1970.
The most surprising information was given by Charles Edwards, founder of Capriole Investments. He has made a future forecast that will surprise many. According to him, the price of gold can reach $12,000 to $23,000 per ounce in the next 3 to 8 years!
Now the question is, why is he giving such a big target? There are two main reasons behind this:
Increase in gold reserves of central banks: Chin,a in particul,ar has increased its gold reserves by almost 10 times in the last two years. When big countries start accumulating gold instead of fiat currency, then you have to understand that a big economic shift is coming.
Inflation: Currently, the supply of fiat money or paper money is increasing at a rate of about 10.5% per year. The value of money is decreasing, so natura,lly the price of hard assets or gold is increasing.
As crypto investors, many of us may be disappointed to see this calm attitude of Bitcoin now. But it is important to remember that when Bitcoin consolidates, opportunities arise in altcoins or other assets. This huge rally in gold proves that the demand for safe havens or safe investments is increasing in the global economy.
If Charles Edwards' analysis is true and gold really does go to $23K in the next few years, then Bitcoin (also known as digital gold) will not be far behind. For now, we have to keep a close eye on the $86K - $91K range.
The market is volatile, so don't make any hasty decisions. Trade with your risk management in mind.
That's all for today's analysis. What do you think? Will Bitcoin touch $100K soon, or are we about to see a big dump? Don't forget to share your thoughts in the comments.
Stay ,well everyone, happy trading
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