In a recent analysis, renowned cryptocurrency analyst Michaël van de Poppe forecasts a potential short-term correction in gold prices.
He suggests this shift could redirect investors towards riskier assets, particularly altcoins. Sharing his insights on social media platform X, van de Poppe emphasized that gold charts are the most critical to watch this week. The analyst cautioned that if gold prices remain below $3,365, a sharp decline of 4-10% could occur within the next one to two weeks. He noted that this potential downturn could lead to sudden macroeconomic changes.
Critical Thresholds in Gold Prices and Potential Scenarios
According to van de Poppe’s analysis, gold has formed a bearish technical pattern on the 6-hour timeframe. This formation points to the possibility of the precious metal dipping to levels around $3,200 in the short term. The analyst specifically warned that if gold prices stay below the critical $3,365 mark, an abrupt drop of 4-10% could be triggered in the coming weeks.
The sudden correction experienced at the end of last week is seen as a confirming signal for this short-term downtrend. Van de Poppe pointed out that such a decline could open doors to sudden changes, not only in the commodity markets but also in the broader macroeconomic balance. Conversely, a rise above $3,365 would invalidate this bearish scenario.
Increased Appetite for Risk and Shift Toward Altcoins
The analyst anticipates that this potential decline in gold prices could result in a significant shift in investor behavior. According to van de Poppe, the bearish trend in gold may prompt investors to move away from traditional “safe-haven” assets, fostering greater risk appetite and leading them towards more volatile investments.
In such a scenario, cryptocurrencies, particularly altcoins, could emerge as a prominent asset class for investors. Van de Poppe highlighted this possible rotation by stating, “As gold declines, investors may switch to risky assets and cryptocurrency could stand out as the best asset class.” However, this hypothesis would become invalid if gold prices rise above $3,365 and start seeking new highs, potentially leading to pressure in altcoin markets.
Macro Dynamics and Alternative Triggers
Van de Poppe also pointed to a potential rally in China’s offshore yuan (CNH) that could heighten interest in cryptocurrency markets. Such currency movements often influence international investors’ asset preferences.
After gaining over 60% in 18 months, gold prices are currently trading around $3,324. The analyst’s views highlight how changes in significant asset prices, such as gold, can determine investor risk preferences and, consequently, short-term movements in alternative markets like cryptocurrencies. The potential revival in the altcoin market seems contingent on this risk rotation scenario materializing.