Bitcoin could soon be ‘off to the races’ and hit $90,000 if…
Bitcoin and Gold.
At press time, both of these asset classes were trading in the red. Bitcoin, the world’s largest cryptocurrency by market cap, was trading under the $42k-mark whereas the yellow metal stood at $1,730. Both registered corrections of about 4% and 1%, respectively, yesterday.
Needless to say, this is doing little to alleviate concerns among some investors. In fact, just recently, best-selling author of Rich Dad Poor Dad Robert Kiyosaki warned investors about the same.
“Giant stock market crash coming October. Why? Treasury and Fed are short of T-bills. Gold, Silver, and Bitcoin may crash too,” he said.
What does the future look like for Gold and Bitcoin?
Chris Vermeulen, Chief Market Strategist at investment advisory firm TheTechnicalTraders.com, discussed the same during a recent interview.
According to the exec, Bitcoin and gold will undergo further price consolidation before hitting new all-time highs on their respective charts.
Can the #Crytpo winter be repeated? Chris Vermeulen of @TheTechTraders has a downside target of $16k – $21k for #Bitcoin Full interview: https://t.co/[email protected]OW pic.twitter.com/kumUcjeDy5— David Lin (@davidlin_TV) September 27, 2021
Talking about gold first, Vermeulen asserted that it seemed to be presenting a very strong bullish pattern – A ‘‘V-shaped recovery’ pattern.
“I don’t think it’s going to break out to new highs this year, but I think gold is trying to put in a base. I think it’s going to try to range here before $1,700 and $2,000 until the end of the year, and next could be a very big year for gold.”
Meanwhile, he opined that “gold will have a good 2022 since it’s working towards the $2,600-mark.” Vermeulen also noted that the precious metal is suitable for investment, but not for trading at the moment.
What about Bitcoin then? The exec believes Bitcoin, popularly known as ‘digital gold,’ is bound to “undergo a series of rallies and consolidation in the coming months before hitting a new high.”
“The reality is that it is currently stuck in a massive range that is acting as a driver for the next high….undergo a series of sideways trading for a long time, potentially running into several months.”
Moreover, Bitcoin in 2017 (v. now) retraced a similar path. Post hitting an all-time high of close to $20,000 in 2017, it dipped significantly.
Ergo, a further correction might be in place for the flagship token. Amid such uncertainty, Vermeulen projected a downside of $21,000 0 $16,000. Needless to say, Bitcoin needs to record another significant bounceback soon.
“If it breaks to the upside we could be off to the races, maybe it’s gonna hit $90,000. But, if its stays in the range or breaks below, (then) it’s kinda like dead money.”
Nevertheless, some others have been even more critical of the cryptocurrency. Economist and crypto-skeptic Steve Hanke, for instance, recently took to Twitter to criticize its extreme volatility and susceptibility to fraud.
#Bitcoin is an asset that is extremely volatile, susceptible to fraud, and highly uncertain. What could go wrong? Bitcoin is nothing more than a highly speculative asset with a fundamental value of ZERO. pic.twitter.com/RxwU3MbW1l— Steve Hanke (@steve_hanke) September 27, 2021
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