TLDR
- Bitcoin has been tracking Gold’s price pattern from the 1980s, showing similar consolidation and breakout behavior
- Analyst Charles Edwards says Bitcoin could go “bananas” if price closes above $110K, following Gold’s historical trajectory
- Fundstrat’s Tom Lee predicts Bitcoin could reach $250K this year with long-term targets of $2-3 million
- Bitcoin’s volatility has been roughly twice as high as Gold’s but follows the same structural pattern
- Current pullback viewed as healthy consolidation rather than downturn, driven by global liquidity expectations
Bitcoin continues to mirror Gold’s historical price structure from the 1980s, according to analysis from Capriole Investments founder Charles Edwards. The comparison shows Bitcoin consolidating around its 2021 all-time high in a pattern similar to Gold’s movement around its 1980 peak.
Edwards originally identified this pattern last year when Bitcoin was consolidating at previous highs. Gold’s consolidation in the 1980s eventually led to a breakout that pushed prices two times higher.
Bitcoin is following the Gold ATH structure. It then 2Xed from the lows. Discussed: https://t.co/eux0csHx5b pic.twitter.com/C4sIrSgdPl
— Charles Edwards (@caprioleio) August 21, 2024
Recent data confirms the similarity between the two assets has continued. Both Bitcoin and Gold experienced breakouts from their respective consolidation phases in comparable fashion.
Bitcoin’s volatility has been roughly twice as high as Gold’s during this period. The cryptocurrency has shown magnified versions of both upward and downward moves compared to the precious metal.
The latest Bitcoin price action remains aligned with Gold’s historical pattern. Edwards notes that Bitcoin’s recent close appears less promising than Gold’s performance at a similar stage in its structure.
Analyst Sees Potential for Major Rally
Edwards believes Bitcoin could experience a major surge if it closes above $110,000. This prediction is based on Gold’s historical performance, which showed a surge from a comparable point in its price structure.
Update
(a bit late, but someone reminded me) https://t.co/E775tv85Eb pic.twitter.com/LF0BzxgVmL— Charles Edwards (@caprioleio) June 2, 2025
The analyst stated that closing “back above $110K and this will probably go bananas.” This assessment relies on the assumption that Bitcoin will continue following Gold’s historical trajectory.
Meanwhile, Fundstrat co-founder Tom Lee has outlined even more optimistic projections for Bitcoin. During a CNBC interview, Lee discussed Bitcoin’s potential to reach $250,000 this year.
Lee views the current Bitcoin pullback as healthy consolidation rather than a downturn. He attributes Bitcoin’s movement to global liquidity factors and expectations of dovish Federal Reserve policy.
Long-Term Price Targets Reach Millions
The Fundstrat executive highlighted a demand-supply imbalance supporting Bitcoin’s upward potential. He cited statistics showing 95% of all Bitcoin has been mined while 95% of the world doesn’t own Bitcoin.
Lee believes this imbalance creates potential for continued price momentum over the next decade. He expects more buyers to enter the Bitcoin market during this timeframe.
Looking at longer-term valuations, Lee compared Bitcoin to Gold’s market size. He referenced the estimated $23 trillion value of above-ground Gold as a baseline for Bitcoin’s potential.
This comparison suggests Bitcoin could reach $1.2 million based on matching Gold’s network value. Lee believes Bitcoin is more valuable than Gold and could reach $2-3 million long term.
The analyst emphasized Bitcoin’s fixed supply and global accessibility as long-term strengths. He views the cryptocurrency as a hedge against fiat currency inflation.
Current market dynamics show Bitcoin responding to global liquidity movements. Lee expects dovish Federal Reserve policy to provide tailwinds for Bitcoin next year.
Edwards’ latest analysis shows Bitcoin at a critical juncture in its comparison to Gold’s historical pattern. The cryptocurrency’s next moves could determine whether it continues following the precious metal’s trajectory or diverges into a different pattern.
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