A prominent market analyst believes that both crypto and commodity markets could be headed for a parabolic rally.
According to analyst and entrepreneur Michaël van de Poppe, this is because both crypto assets and commodities are “extremely undervalued.”
The analyst noted in a September 15 post on X that the last time the commodity was valued at similar levels was in 2000 and 1971.
“Commodities and cryptocurrencies are extremely undervalued and there is a good chance that commodities will enter a 10-year bull market. I expect a lot of upside from both asset classes.”
S&P Commodity Index vs. S&P 500. Source: Michael Van de Poppe
The index shows that commodities are worth less than they were during the bubble in 2000, before the market rebounded in the wake of the 2008 financial crisis.
A growing number of analysts are predicting a Bitcoin (BTC) breakout in October, which could be spurred by next week’s Federal Reserve meeting on September 18, which could result in a widely anticipated interest rate cut.
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Global liquidity could explode: Raoul Pal
Increased global liquidity could fuel the next Bitcoin rally.
This is mainly because major economies need to restructure their debt, according to Raoul Pal, founder and CEO of Global Macro Investor.
Global liquidity breakthrough. Source: Raoul Pal
Pal shared in an X video on September 15 that this would lead to a global liquidity breakthrough in the US, Japan, China, and Europe.
“As global liquidity increases, cryptocurrencies will rise, and other markets like Nasdaq will rise. Global M2 is also starting to rise.”
BTC/M2 Money Supply. Source: Jamie Coutts
Some of the growing global liquidity could flow into Bitcoin, which could lead to the next bull run in the 2024 cycle, as Bitcoin’s price is highly correlated to the M2 money supply.
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Bitcoin Heads for Historic Rally in 3 Months as Analysts Predict $92,000 BTC
Based on past chart patterns, Bitcoin appears set to enter a three-month uptrend following a three-month downtrend.
According to popular analyst Titan of Crypto, Bitcoin recently retested a key support level on the weekly chart, which could set up a rally above $90,000.
The analyst wrote in a September 13 post to X:
“In previous cycles, when price retested the 50-week SMA, it bounced at least 40%. On average, the bounce rate was 71%. If #BTC were to rally 71% from here, it could reach $92,000.”
BTC/USD, 1-week chart. Source: Titan of Crypto
However, Bitcoin’s “worry phase” threatens a deeper downside in September ahead of the next rally, which could be spurred by the Federal Reserve’s next meeting on September 18.
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