Bitcoin Faces 90% Correction Warning Amid Gold Surge
2min read A commodity strategist has issued a cautionary note regarding Bitcoin's recent price surge, which began in late 2024. Despite market expectations for a continued rally toward $100,000, the strategist warns that Bitcoin could experience a significant correction, potentially dropping to $10,000. This warning comes as the cryptocurrency market faces various challenges, including rising gold prices and shifting macroeconomic conditions.
The strategist highlighted several factors that could contribute to a potential drop in Bitcoin's price. One key factor is the inverse relationship between Bitcoin and gold. While gold has climbed 15% in 2025, Bitcoin has dropped by the same percentage. This inverse link suggests a shift in investor sentiment towards safer assets like gold, which has seen increased demand due to economic uncertainty.
Another factor is the performance of the S&P 500, which has historically shown a strong correlation with Bitcoin. The strategist noted that during times of economic uncertainty, Bitcoin tends to follow the performance of equities markets. This relationship could indicate that Bitcoin's price is influenced by broader market trends and investor risk sentiment.
The strategist also compared the current surge in cryptocurrencies to earlier speculative bubbles, such as the dot-com collapse of the early 2000s. Record-breaking Bitcoin ETF listings and growing retail speculation are seen as indicators of excessive optimism, which could lead to a market correction. Additionally, the strategist warned that increased political focus on digital assets could intensify volatility in the cryptocurrency market.
In a follow-up post, the strategist reiterated his warning, predicting a potential price crash and suggesting that Bitcoin might "lose a zero." As risk assets come under pressure, investors are expected to shift towards gold, reinforcing its status as a safe haven. This shift in investor sentiment could further contribute to a drop in Bitcoin's price, potentially leading to a significant correction.
Despite the warning, some analysts remain optimistic about Bitcoin's price trajectory. One pseudonymous analyst noted that Bitcoin has broken out of an ascending triangle, a bullish pattern with a measured move target of $90,405. Key support for Bitcoin now lies at $82,000, while resistance ahead could slow momentum. A sustained close above $85,000 would strengthen the bullish case, but failure to hold support may trigger a retest of $80,000.
Another prominent online analyst pointed to Bitcoin's falling wedge pattern, a setup historically leading to significant price rallies. According to the analyst's analysis, Bitcoin remains below the 50-day Moving Average (50D MA) while finding support at the 50-week Moving Average (50W MA), a structure that has preceded major breakouts. Past rebounds from these formations have ranged between 26.68% and 106.96%, setting a potential price target of $96,800 to over $150,000.
With Bitcoin testing its long-term channel-up support, similar to previous bottoms in September 2024 and September 2023, the probability of a strong rebound is rising. However, the strategist's warning serves as a reminder of the potential risks and volatility in the cryptocurrency market, and investors should approach with caution.
