The chief market strategist of investment advisory firm TheTechnicalTraders.com Chris Vermeulen has suggested that Bitcoin and gold will undergo further price consolidation before hitting a new all-time high.
Speaking to Kitco News, Vermeulen indicated that gold has presented a very strong bullish pattern while clarifying that the precious metal is looking for a strong base.
He projects that gold will have a good 2022 since it’s working towards the $2,600 mark. Vermeulen notes that the precious metal is suitable for investment but not a good trade tool at the moment.
“I don’t think it’s going to break out to new highs this year, but I think gold is trying to put in a base. I think it’s going to try to range here before $1,700 and $2,000 until the end of the year, and next could be a very big year for gold,” Vermeulen said.
‘Bitcoin needs a lot of time before next high’
On Bitcoin, the strategist stated that the cryptocurrency would undergo a series of rallies and consolidation in the coming months before hitting a new high. Vermeulen notes that the asset needs a lot of time, and it might take at least a year before hitting a new record price.
With Bitcoin experiencing high volatility in recent weeks, Vermeulen said that the asset is currently stuck in a massive range that is acting as a driver for the next high. He stated that the asset might be under a series of sideways trading for a long time, potentially running into several months.
By press time, Bitcoin was trading at $41,900 after the value plunge over the past week amid an increased regulatory crackdown from China. Amid the uncertainty, Vermeulen projected a downside of $21,000 to $16,000.
He also acknowledged that Bitcoin needs to record another significant bounce soon. Furthermore, Vermeulen stated that the asset will emulate the price trend from the last significant all-time high of $20,000 set in 2017. The strategist placed the next record price target at $90,000.