According to a well-known cryptocurrency analyst and trader, silver is on the verge of a major breakout that could outshine gold, which has been reaching new all-time highs.
The analyst, known as Bluntz, shared with his 320,800 followers on X that silver is gearing up for a significant surge. He believes that the gold-to-silver ratio is diverging on low timeframes, indicating that silver may outperform gold in the near future.
“Silver gearing up for the next major leg up in my opinion, gold probs about to take a backseat for a bit as gold-to-silver ratio starting diverge heavily again on low timeframes.”
Bluntz utilizes Elliott Wave theory to analyze the market, suggesting that silver is currently in the midst of a third-wave surge. He predicts that silver could reach $40 before experiencing a slight correction, followed by a rise to around $43.
Additionally, Bluntz points out other indicators of an imminent silver breakout, such as a potential bullish inverse head-and-shoulders (IHS) pattern forming against the S&P 500 (XAG/SPX) on the monthly chart.
“Four months later and now silver is also on the cusp of the same massive breakout against equities. Four year IHS breakout brewing with volume increasing substantially in the breakout. Multiple extremely high timeframe bull divergence. Decade-long downtrend broken.”
Bluntz also predicts that gold may soon hit a new all-time high, with a target of $3,800 within a few weeks.
“$3,400 resistance cleared and coming in on the all-time high test. Gold still looking crazy bullish and I think we see $3,800 within a few weeks.”
Gold is currently trading at $3,414, while silver is valued at $36.42. The gold/silver ratio stands at 93.
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