Bitcoin is on the brink of a historic breakout, with some forecasting it could explode to as high as $131,000 to $155,000. This outlook is in line with the Bullish Elliott Wave (EW) Principle count. That is a very strong indication that the overall cryptocurrency market has some extremely strong bullish momentum. A wave is expected as market conditions change. After the U.S. federal government’s credit rating was recently downgraded, investors started moving into safe havens, including gold.
In recent trading sessions, Bitcoin has garnered attention from “smart money” investors, who are strategically positioning themselves in anticipation of this upward trend. Perhaps most extraordinary is the trend their observers are seeing of a new correlation between performance of the cryptocurrency and more traditional economic indicators, including stock performance. U.S. consumer inflation expectations are rising, supporting the U.S. Dollar against a broad index of other currencies.
During the Asian session on Monday, gold prices attracted buyers. In September of 2023, as investors went to gold during the uncertainty following the credit rating downgrade. This announcement has only increased gold’s appeal as a safe-haven asset. Yet gold is still struggling to defend its gains near the $3,250 level. At the same time, the riskier asset environment surrounded in uncertainty has caused many to flock to the flight to safety assets such as gold.
At the same time, the EUR/USD currency cross has fallen through to three-day lows, to around 1.1130. This pullback is being blamed on a much stronger U.S. Dollar, which has made gains against many foreign currencies. Meanwhile GBP/USD gave back some of its post-referendum gains, dropping again to 1.3250 reflecting the heightened demand for the Dollar. Analysts have noted that these types of movements are representative of a bigger trend in the industry. They expose the deep ties between currency fluctuations, economic developments, and investor sentiment.
“Bitcoin is setting up for a rally to $131-155K.” – source not specified
The markets are already racing ahead in response to these changes. As ever, folks are especially focused on whether Bitcoin will continue reinforcing the Bullish EW Principle count. It’s no secret that a lot of the market is bullish on Bitcoin’s future—especially now that the leading cryptocurrency has gained institutional support.