(Kitco News) – When something goes straight up, it usually comes straight back down said Chris Vermeulen, chief market strategist at The Technical Traders, referring to bitcoin’s recent parabolic move upwards.
“Typically when [you have] a multi-year base, typically you’re going to see two to three times that rally to the upside. We’re almost at two times that level, $36,000 is pretty much the upside target. The more something goes straight up, the more likely it is to come straight back down,” Vermeulen said.
Bitcoin’s recent shoot upwards is simply not sustainable, Vermeulen noted.
Gold sees upside to the $2,400 an ounce level in 2021 but faces risks of a possible stock market correction that could drag the metal down.
“Even if you’re a precious metals holder, you pretty much still want to be in line with the broad market because it’ll pull metals and miners up and down with it,” he said.
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