Gold has just broken out to a new all-time high of $2,570, while silver has just hit $30. Could Bitcoin now follow?
The traditional hedges when the economy is sliding have always been gold and silver. This has remained true even today. Ill winds are blowing for world economies, as spending continues to be out of control and globalism retreats.
Bullish breakout for gold
Source: TradingView
The weekly chart for gold shows that a very bullish breakout has just taken place. It can be seen that the gold price was pushing up against the strong horizontal resistance at $2,000 since mid-2020. This broke in February this year, and the price surged up to the 1.618 fibonacci at $2,350 in a short amount of time.
Some consolidation followed, but gold was not to be denied, and July saw the price break out and retest before heading higher again. The price followed an ascending trend line for a period of a few weeks, and has now broken through.
The next targets for gold are at $2,800 for the 2.618 fibonacci, and then $3,260 for the 3.618 fibonacci.
Silver back at the $30 resistance
Source: TradingView
The silver price has spiked upward on Friday, taking it to the $30 resistance once again. If silver can pierce through this resistance and hold above, the price can surge a lot higher.
Targets for silver are $38, and then what would effectively be a new all-time high at $50. $63 is the next fibonacci extension level at 3.618.
Will Bitcoin follow gold and silver?
Source: TradingView
If gold and silver are the traditional hedges for economic uncertainty, then Bitcoin is the hedge for the age of digital assets. The Bitcoin price has not left its bull flag yet, but macro indicators are close to signalling that an upsurge might not be far away.
Targets for Bitcoin, if it manages to surpass its all-time high at $73,800, are $102,000 for the 1.618 fibonacci, and then $155,000 for the 2.618 fibonacci.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
