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Recent action has caused the Bitcoin price to retest the $67,000 price level. In particular, Bitcoin price fell about 8.9% in seven days from $73,464 on October 29 to $66,895 on November 4, as many short-term traders exited their positions. At the same time, there are a few long-term holders also unloaded their Bitcoinswhich will likely lock in profits.
According to technical analysis the constant correction is absolute normal and fine for Bitcoin. Above all, technical analysis shows that Bitcoin’s $100,000 price target is well in play. Interestingly enough, these forecasts are based on drawing parallels with gold’s price history.
Analyst Reveals What the Gold Chart Says About the Bitcoin Price
Bitcoin has long been called the digital gold in terms of its use as a hedge against inflation. However, their respective price actions over the years point to more similarities than many investors realize.
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Crypto analyst Tony “The Bull” Severino took to the social media platform X share an intriguing trend He observed the Bitcoin price chart to portray an optimistic perspective about the long-term trajectory of the cryptocurrency. Severino pointed out that Bitcoin’s price movements appear to follow a similar path to the historical patterns seen in gold, which went through similar price tops, price bottoms, breakouts and retests.
According to the price charts shared by Tony Severino, he highlighted notable similarities between the price action of Bitcoin on the two-week candlestick timeframe and gold on the two-month candlestick timeframe. Bitcoin’s price action in particular has mirrored that of gold in several cases. Therefore, the analyst compared the current price breakout/retest in the Bitcoin price with that of a similar breakout/retest in Gold in 2023.
In March 2023, gold underwent a breakout and retest pattern, paving the way for an extended rally for several months up to the time of writing. Severino believes Bitcoin could follow a similar trajectory for a multi-month rally.
What’s Next for the BTC Price?
According to Tony Severino’s analysis, Bitcoin’s price correction will end very soon and it will experience a notable increase for the rest of the year. In terms of a timeline, he noted the creation of a new record by the end of 2024 and a price of $100,000 for Bitcoin in the first quarter of 2025.
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Although the analyst’s projection is based on Bitcoin’s correlation with gold, the price target resonates with similar price predictions from other technical analyses. For example, a CryptoQuant analyst known as CoinLupin highlighted a similar price timeline based on the Bitcoin MVRV (Market Value to Realized Value) ratio. Based on this ratio, he predicted a price target range of $95,000 to $120,000.
At the time of writing, Bitcoin is trading at $68,714 and is down 3% in the last 24 hours.
Featured image created with Dall.E, chart from Tradingview.com