$2,400 gold will come by 2023, Bitcoin falling to $10k is 'more probable' than a rally
Precious metals and Bitcoin have reached pivotal “breakout” points and are on the verge of another major move, according to Patrick Karim and Kevin Wadsworth, technical analysts and founders of Northstar & Badcharts.
Karim and Wadsworth spoke with David Lin, Anchor for Kitco News.
For Bitcoin, the odds are more probable that another move downwards happens before a substantial bull rally takes place, Wadsworth said.
“[It is more] probable that [Bitcoin] is going to break to the downside and head down towards that $10,000 to $12,000 target,” Wadsworth said. “I would assess that the odds that around 70% to 80% likely that we break down to see these lower lows and around 20% to 30% of moving to the upside,” he said.
Wadsworth said that his upside target for Bitcoin would be around the 200-day moving average, around the low $30,000s.
“By the time we move up to meet it, I guess we could be somewhere around $29,000 or $30,000. So that is the upside target and that's the highest I would expect it to get. We may very well start to run out of momentum before then,” he said.
Gold price targets
Despite high inflation and geopolitical uncertainty, gold’s performance has been flat this year. However, Karim said that under certain conditions, gold will experience a breakout rally. In particular, he told investors to watch the gold-silver ratio.
“The gold-silver ratio is an [indicator], where if there’s risk-on, if the market melts down or a spike, the gold-silver ratio will crescendo up,” he said.
Once the gold-silver ratio goes below a certain level, Karim said that “silver and gold will outperform U.S. equities, and silver will outperform gold in the initial legs of the recovery phase of U.S. equities.”
Wadsworth agreed with Karim’s analysis.
“We’re in a sideways trading range for gold at the moment,” said Wadsworth. “It’s got a floor of about $1,680, and the top is somewhere just below $2,000… as long as we stay in that sideways trading range, I’ve got no concerns whatsoever. To me, this is just a staging post on the way to much higher values.”
Karim added that if gold can “break out” beyond its $1,800 to $2,000 price levels, then that would be a “game changer” that could see gold reach new heights.
Ultimately, gold is poised to reach at least $2,400 by 2023, according to Northstar & Badcharts’ analysis.
To learn more about predictions for the stock markets, watch the video above.
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