Bitcoin could target a 61% rally to an unprecedented price if it mirrors gold’s performance, as it always has, and breaks out from a multi-year resistance level.
Bitcoin, the largest cryptocurrency by market cap, has been on a bullish run since April, rebounding from around $74,000 to reclaim its six-figure valuation. Interestingly, gold has been on a similar run and is on course to print its sixth consecutive uptrend on the monthly timeframe.
Gold’s Breakout and Possible Bitcoin Impact
Notably, gold, the largest asset in existence with a market capitalization of $22 trillion, recently broke from a major structure. Analyst “Galaxy” drew the attention of the crypto community to this trend in a June 20 post highlighting its possible impact on Bitcoin.
For perspective, gold trended within a triangle for over 12 years after making a high of $1,920 in September 2011. After two failed attempts in August 2020 and March 2022, gold finally breached the upper resistance of the structure in April 2024.
Since the breakout from the tip at $2,086, gold has rallied an impressive 61.4% to its current market price of $3,368. Recall that the precious metal reached a new all-time high of $3,500 in April before retracing to its current price.
Meanwhile, Bitcoin has shown a strong lagging correlation with gold in the past 12 months. Both assets have taken turns rallying, with gold leading and BTC following. As a result, Galaxy suggested that Bitcoin may be the next to break out from a similar pattern, sparking a price growth to new all-time highs.
BTC Pearson Correlation
Is Bitcoin Next?
Galaxy emphasized that Bitcoin has been increasing in value for 15 years now and has not shown any signs of slowing down anytime soon. Furthermore, he highlighted that Bitcoin has formed a similar price pattern with gold but in a weekly timeframe.
For context, the crypto firstborn is currently trending within a multi-year symmetrical triangle, emerging from its April 2021 high of $65,000. It retested the upper resistance wih a high of $69,000 in November 2021 but faced a strong rejection there.
Meanwhile, Bitcoin has retested the resistance twice this year, making new all-time highs on each attempt. BTC rallied to $109,354 on January 20 and its current all-time high of $111,965 on May 19, both of which proved abortive in its quest to break out.
Gold’s Breakout in Comparison to Bitcoin
Now, the analyst is favoring Bitcoin to mirror gold’s breakout and surge to unprecedented prices. Suppose BTC copies gold’s 61% rally after breakout and defies the resistance from the current high of $112,000, the pioneering cryptocurrency would hit a new all-time high of $181,000.
At the time of writing, Bitcoin trades at $103,762, about 74% away from the target.
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