Many people hold the view and belief that since gold experienced one of the biggest drops in its history yesterday, investors will now move away from gold and shift their money into crypto, buying Bitcoin and causing the market to pump.
It is true that many people will enter the crypto market, bring in capital, and invest in crypto. However, keep in mind that this impact will only be long-term.
In the short term, such a move is not very likely.
Do not rush into the market based on the idea that after such a big drop, the market will immediately move upward.
This is based on our experience.
Historically, whenever the market drops, it doesn’t stop at just one drop — after the first drop, there is often another, and sometimes another after that.
You can clearly see that this cycle started from around $125,000, and from that top we have taken a bearish bias toward the long side of the market.
This phase can last roughly 4 months, until the market properly shakes out traders, causes emotional stress, and pushes many people out of the market.
Only after new and inexperienced traders are completely flushed out will the market continue its journey toward $140,000.
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