Bitcoin’s recent price fluctuations have left many investors evaluating its future trajectory. Following a sharp decline to $108,000 last week—a 13% drop from its all-time high of $124,500—speculation arose about whether the cryptocurrency had reached its peak. Despite this downturn, several analysts remain optimistic, suggesting that Bitcoin’s bull market may still be in its infancy, particularly when compared to traditional assets like gold.
As reported by Cointelegraph, both gold and the U.S. stock markets have been reaching new all-time highs, while Bitcoin has faced challenges, seemingly caught in liquidity issues that deter bullish investors. However, analyst Milk Road Macro expressed confidence that Bitcoin could follow gold’s lead, noting historical patterns in which Bitcoin has trailed gold by about three to four months. This correlation suggests that if Bitcoin continues its trajectory in line with gold, a surge could be anticipated in late October or November.
The technical analysis of Bitcoin and gold indicates that both assets have formed rising wedge patterns, with gold successfully breaking through this pattern earlier in the year. Analysts predict that Bitcoin could follow suit, potentially leading to significant price increases. Milk Road Macro pointed out that while gold has seen a 10% gain, Bitcoin’s historical performance indicates it could yield returns five to ten times higher, placing Bitcoin’s potential upside between $160,000 and $220,000.
Dan Tapiero, CEO of 50TFunds, echoed similar sentiments, asserting that the bull market for Bitcoin has yet to commence. He identified a “massive cup and handle” pattern in the BTC/XAU trading pair, which could lead to new price discoveries if Bitcoin breaks above the crucial threshold of 37 XAU. Should this occur, a remarkable rally of up to 446% is possible, driving Bitcoin’s value substantially higher.
Adding to the excitement, another analyst, Zynx, suggested that for Bitcoin to match gold’s all-time high, it must exceed $150,000. Historically, Bitcoin has surpassed its price in gold by considerable margins, often doubling or more, making the prospect of a $300,000 valuation increasingly plausible.
On a daily basis, Bitcoin showed signs of recovery, recently hitting an intra-day high of $112,293. Analysts emphasized the importance of maintaining this level to attract further upwards momentum. Observing the market closely, AlphaBTC noted that sustaining the $112,000 mark could facilitate a push toward the local high of $114,000, indicating a potential recovery phase.
Furthermore, a Bitcoin liquidation heatmap revealed significant liquidity poised for action. Over $612 million in ask orders exist between $112,350 and $114,000, indicating that breaching this barrier could signal the conclusion of the current market correction and usher in a bullish phase.
Industry experts are watching the $113,000-$114,000 zone closely, as a confirmed breakout from this resistance could pave the way for a rally towards $140,000 in the coming months. Given the volatile nature of cryptocurrency investments, analysts stress the importance of personal due diligence before making any financial decisions.
