Bitcoin Mirrors 1970s Gold Rally, Eyes $200K Surge

Technical analyst Mikybull Crypto has identified compelling similarities between Bitcoin’s current price trajectory and Gold’s legendary 1970s rally, drawing detailed comparisons on social media platform X. His analysis overlays Bitcoin’s multi-year price action with Gold’s performance from the mid-1970s to 1980, revealing nearly identical structural patterns. Both assets show a consolidation phase followed by a powerful breakout, with Bitcoin currently forming higher lows above a macro ascending trendline – the same technical structure that preceded Gold’s explosive run decades ago.

According to Mikybull’s chart analysis, Bitcoin is mirroring Gold’s third breakout wave (Wave 5), which historically ushered in the precious metal’s most significant price appreciation. The analyst’s comparison shows Bitcoin following the same macro setup that propelled Gold to massive gains, suggesting the cryptocurrency could be entering a similarly transformative phase. This technical alignment between two fundamentally different assets – one digital and one physical – underscores the universal nature of market psychology and price patterns across different eras and asset classes.

The technical framework becomes even more compelling when combined with Fibonacci extension levels and the Livermore Speculative Chart, an early 20th-century framework for tracking market behavior. Bitcoin is currently trading around the 1.272 Fibonacci extension level below $125,000 and is playing out the eighth stage of Livermore’s speculative cycle. This positioning suggests the cryptocurrency is in the advanced stages of its current bullish cycle but still has significant upside potential.

Market trends indicate Bitcoin is poised to advance past the eighth stage at the 1.618 Fibonacci level of $145,355, then progress to the ninth stage of the cycle just above the 2.618 Fibonacci extension level at $204,000. Beyond this lies the tenth and final stage around the 3.618 extension at $262,000, which Mikybull projects as the potential peak of this cycle based on Livermore’s speculative framework. This mathematical projection provides concrete price targets that align with the historical Gold comparison.

Bitcoin’s technical breakout is being supported by fundamental factors, particularly growing institutional demand that has provided the momentum needed to push through previous resistance levels. After several weeks of ranging between $110,000 and $120,000, Bitcoin has resumed its steady uptrend that began earlier in the year, culminating in a new all-time high of $126,080 reached on October 6.

The current price of $121,450 represents a slight retracement from this peak but maintains strong positioning within the broader uptrend. This institutional-backed momentum provides the fuel for the potential explosion to $200,000 that technical analysis suggests. The combination of strong fundamental demand with compelling technical patterns creates a powerful bullish case for Bitcoin’s continued appreciation, mirroring the conditions that drove Gold’s historic rally in the 1970s.