It has been a bad month for risky investments. Oil prices are up, inflation fears are back, and nervous money is moving into safe places. Gold is the oldest safe place there is. Its biggest r
It has been a bad month for risky investments. Oil prices are up, inflation fears are back, and nervous money is moving into safe places.
Gold is the oldest safe place there is. Its biggest rival is having a harder time.
That rival is Bitcoin. People call it "digital gold" for a simple reason: no one can make more of it. Gold is limited by nature. Bitcoin is limited by its own code, at 21 million coins.
Gold vs Bitcoin: Which one is a better store of value? (2:59)The two compete for the same investors, and Bitcoin beat gold badly in the third quarter. This month, gold is winning. Bitcoin has dropped from $87,000 to $83,389 at the time of writing.
But one analyst looked at the chart and saw something familiar.
Crypto analyst Ali Martinez said on X on Oct. 13 that Bitcoin's chart looks almost exactly like it did right before its last rally.
His key number is $84,000. That's Bitcoin's average price over recent weeks, and traders watch it closely: when the price climbs back above its own average, a fall has usually turned into a recovery.
Last time Bitcoin crossed back above that line, it rallied. Martinez says today's setup looks very similar.
If it happens again, he sees Bitcoin climbing to $89,000 first, then $93,000 — about 12% above today's price.
Santiment data shared by AliWhile most investors sold the drop, Bitcoin's largest holders bought it.
Martinez shared data from research firm Santiment showing the biggest accounts added 16,010 Bitcoin in five days — about $1.3 billion worth.
That split is worth noticing. Small investors selling in fear while the biggest ones buy is what the bottom of a market usually looks like. It's not a guarantee. It shows who expects a comeback.
There's a catch at $84,569.
Data from research firm Glassnode shows nearly 800,000 Bitcoin were last bought around that price. All those buyers are currently losing money. When the price gets back to what they paid, many will sell just to get out even.
That makes $84,569 a wall. Break through it, Martinez says, and the path to $93,000 gets much clearer.
Bitcoin needs to climb and hold above the $84,000 to $84,569 zone. Until it does, gold keeps the crown this month.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research before making any investment decisions.
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