Technical and fundamental analysts predict an imminent rally for crypto and commodities

Macro-economics analyst and founder of MN Consultancy Michaël van de Poppe expressed his positive approach to crypto and commodities on X. The analyst predicted that crypto assets and commodities are undervalued and could slip into a 10-year bull run.

Michaël van de Poppe believes cryptocurrencies and commodities could dispel bullish sentiment. The analyst explained that commodities and digital assets are undervalued and could soon slide into a 10-year bull market. 

“Crypto and commodities are trading at discounted prices”

Poppe shared a Bloomberg chart with historical data depicting expensive equity valuations while commodities are trading at discounted prices. Poppe noted that the current valuation levels for the commodity asset class were last witnessed in 1971 and 2000 while referencing the chart.

The chart shows that the current valuation of the commodity asset class has dipped below the levels witnessed in the year 2000 during the tech bubble. The tech bubble marked low valuation levels that followed an 8-year bull run on commodities. The bull run was cut short by the 2008 financial crisis, and commodity valuations have dipped since then.

Before the 2008 rally, the chart shows that commodity valuations had dwindled from highs in 1990 caused by the Gulf War.

Numerous industry experts used different approaches to call for Bitcoin’s rally. Some analysts believe that the Federal Reserve meeting scheduled for September 18th could yield an interest rate cut.

Founder and CEO of Global Macro Investor Raoul Pal also expressed his bullish sentiment on Bitcoin. According to Pal, an imminent rise in global liquidity could propel the next Bitcoin bull run. Pal explained that refinancing debts from leading economies in the United States, China, Japan, and Europe would fuel the worldwide liquidity.

According to Pal’s X video, Bitcoin will receive a portion of the global liquidity leading to the next leg in the 2024 cycle. Pal also mentioned that the surging global liquidity will cause a rally in other markets, such as NASDAQ. 

The video highlighted there exists a direct correlation between Bitcoin’s price and the global M2 money supply. The video indicated that Global M2 is rising, and Bitcoin’s price will likely follow suit.

Bitcoin’s next rally could push its price to $92,000

Bitcoin has been up 6% in the last seven days and is currently trading at $58,710, according to the real-time crypto price tracking website Coinmarketcap. 

An X analyst, Titan of Crypto, referenced Bitcoin’s recent price performance and predicted a three-month rally. The analyst explained that the BTC price has rallied at least 40% after bouncing off the 50-week simple moving average in previous cycles and could do the same in the current cycle.

“In previous cycles, when the price retested the 50-week simple moving average, it bounced at least 40%. On average, the bounce was 71%. If #BTC rallies 71% from here, it could reach $92,000.”

Titan of Crypto

According to the analyst, the rally could propel Bitcon’s price to an all-time high of $92,000. He shared Bitcoin’s weekly chart showing the asset price testing a key support zone and the 50-week simple moving average, providing more confluence to the bullish prediction.