A widely followed cryptocurrency analyst and trader says silver is about to have a massive breakout.
The analyst pseudonymously known as Bluntz tells his 320,800 followers on the social media platform X that silver may start to outshine gold, which has been hitting new all-time highs.
“Silver gearing up for the next major leg up in my opinion, gold probs about to take a backseat for a bit as gold-to-silver ratio starting diverge heavily again on low timeframes.”
Bluntz practices Elliott Wave theory, which states that a bullish asset tends to go through a five-wave move up before an ABC correction. Based on the trader’s chart, he appears to suggest that silver is in the process of its third-wave surge. He predicts silver may reach the $40 level, then have a slight correction before soaring to around $43.
Bluntz also says other indications of a silver breakout include the possible formation of a bullish inverse head-and-shoulders (IHS) pattern against the S&P 500 (XAG/SPX) on the monthly chart.
“Four months later and now silver is also on the cusp of the same massive breakout against equities. Four year IHS breakout brewing with volume increasing substantially in the breakout. Multiple extremely high timeframe bull divergence. Decade-long downtrend broken.”
Bluntz also says gold may hit a new all-time high within weeks.
“$3,400 resistance cleared and coming in on the all-time high test. Gold still looking crazy bullish and I think we see $3,800 within a few weeks.”
Gold is trading for $3,414 at time of writing.
Meanwhile, the gold/silver ratio, which measures the number of ounces of silver required to purchase one ounce of gold, is currently at 93.
At time of writing, silver is worth $36.42.
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