(Kitco News) - After approaching its record highs in May, Bitcoin is at risk of dropping below the $50,000 level as prices search for a new driver during "weaker summer months," said Florian Grummes, Managing Director of Midas Touch Consulting.
"I assume a pullback over the weaker summer months into the $48,000 to $50,000 range," Grummes told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News. "Then towards the end of the year, [I see] a breakout above $75,000, which would then take us quickly to $90,000 and $100,000."
The strong resistance Bitcoin needs to break through first is between $74,000 and $75,000.
"Usually, these cup and handle patterns take more time than most people anticipate," Grummes pointed out. "We've seen a similar pattern in the gold market during the last 13 years. I don't think it will take that long for Bitcoin, but I would say at least a few more months here."
This is the level Grummes sees Bitcoin prices on the next Bitcoin Pizza Day – May 22, 2025. Watch the video above to find out. For a historical breakdown of what Bitcoin Pizza Day is and where Bitcoin has traded, watch the video above.
Finding a new price driver for Bitcoin will be a problem after the market has already seen massive inflows into spot Bitcoin ETFs and the Bitcoin halving story, Grummes added. "There is no real new narrative for Bitcoin at the moment, he said.
Grummes noted that the next price driver will likely be new liquidity injections by the central banks. "That will be the main driver over the next 1-2 years. Central banks will eventually be forced to lower interest rates again to stabilize the financial system. Things like that could drive prices strongly higher again," he said.
Grummes also weighed in on spot Bitcoin ETFs and the latest news of the U.S. SEC approval of spot Ether ETFs. Watch the video to get the insights.
What's next for gold price and silver price
Gold reached new record highs earlier this month, with June Comex futures rising above 2,450 an ounce. "You can see that gold has finally managed to break out from a long-term cup and handle pattern. This pattern has been in the making for 13 years," Grummes said.
Watch the video above to learn how strong the pullback in gold might be following the record-setting rally.
At the time of writing, June Comex gold was trading at $2,362, up 1.2% on the day.
Grummes sees gold hitting $3,000 an ounce. For his timeline and main drivers, watch the video above.
Grummes broke down what's next for silver following the impressive rally that took prices above $32 an ounce. Watch the video above for his technical breakdown.
This video is brought to you by Swan Bitcoin. Swan Bitcoin IRA - Start Saving Now ? https://Swan.com/retire.
