Bitcoin, stocks, gold; One of these will have 'major breakout' - Gareth Soloway updates targets

Bitcoin, stocks, and gold are all poised for major moves, but not all moves will be equal.

Gareth Soloway, chief market strategist at InTheMoneyStocks.com discusses with David Lin, anchor for Kitco News, which of these assets are most likely to breakout to the upside.

While Bitcoin has breached new all-time highs in recent weeks, it is still struggling to break a double top. In the past bull cycles, namely in 2013 and 2017, a double top was followed by a sharp correction in prices, Soloway noted.

"The last thing an investor wants to do is jump in right at the highs. A double top, historically, whether they're stock charts or crypto charts, there can be significant highs before major moves to the downside. So, the last thing an investor wants to do is put new capital before knowing for sure that this is a major break to the upside," Soloway said. "Now, if it gets kind of above the recent highs and holds above $67,000 for a week or two, then I think it will go to at least $75,000 to $77,000. That's my next calculated resistance level."

Soloway's outlook on the stock market is slightly more bearish into the New Year.

"I'm going against the Christmas rally. I think everyone's banking on it. I don't think it's going to happen as interest rates move towards 2%," he said.

On gold, Soloway said that a major breakout from current levels is now possible.

"If interest rates are rising because of inflation, if you look back at the 1970s, gold actually outperformed. If you look at the last 20 to 30 years when there was no inflation, interest rates moving up actually hurt gold. But we're in the new situation, [heading for] a repeat of the 1970s and 1980s, and gold is starting to move up," he said.

For Soloway's gold price target, watch the video above.

Follow David Lin on Twitter: @davidlin_TV (https://twitter.com/davidlin_TV)

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By David Lin

For Kitco News

Follow @davidlin_TVdlin@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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