Crypto analyst Michaël van de Poppe believes a gold price correction could be a boon for altcoins. He’s closely watching gold, calling its price action the most important chart this week.
Gold’s Potential Drop
Van de Poppe sees a potential bearish pattern in gold’s six-hour chart, suggesting a possible drop to $3,200. He predicts a 4-10% fall within the next one to two weeks, as long as gold stays below $3,365. This drop, he says, would significantly shift the macroeconomic landscape.
Why Gold’s Fall Could Boost Altcoins
According to van de Poppe, a gold price decline indicates investors are becoming more willing to take on risk. This shift in sentiment, he argues, would likely drive money into riskier assets like altcoins. He explains that this is because investors would move their money from “safe haven” assets (like gold) to higher-risk, higher-reward assets (like altcoins).
The Crucial $3,365 Level
However, van de Poppe cautions that if gold breaks above $3,365, his prediction is invalidated. In that scenario, altcoins could see further price drops. He emphasizes the importance of this price level for his overall outlook. A gold correction coupled with a rise in the offshore Chinese renminbi (CNH) would further support his prediction of increased crypto investment.
Current Gold Price and Disclaimer
At the time of writing, gold is trading around $3,324, up over 60% in the past 18 months. Remember, this is just one analyst’s opinion. Always do your own research before investing in cryptocurrencies.
