Economist Alex Krüger Expects Bitcoin to Outperform Gold Despite Short-Term Correction Signs
Bitcoin’s recent price movements have sparked significant discussions about its future trajectory. As the world’s leading cryptocurrency demonstrates strength and maintains support above key levels, analysts remain divided on whether a further rally or a short-term correction is next.
Economist and crypto analyst Alex Krüger, known for accurately predicting the “Liberation Day” market crash earlier this year, has shared a fresh Bitcoin price outlook. According to Krüger, Bitcoin may experience a short-term correction before embarking on another rally, with fluctuations expected ahead of a broader bullish continuation.
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### Krüger Sees Strong Yearly Outlook for Bitcoin
Looking ahead, Alex Krüger believes Bitcoin is poised to outperform gold between now and the coming year. This expectation is supported by a favorable macroeconomic environment shaped by policies under the Trump-led administration and a looser Federal Reserve stance.
In a post on X (formerly Twitter) on October 17, Krüger stated, “Strong view: BTC will vastly outperform gold in 2026.” While recognizing gold remains a solid investment, he argues that Bitcoin’s fundamentals are stronger due to increasing institutional adoption.
Krüger also acknowledged that gold’s rally isn’t finished. However, he pointed out that the same catalysts likely to drive equities and Bitcoin higher in 2026 would also support gold. His advice to investors: “Dips are thus for buying.”
### Signals Indicate a Short-Term Pause Before Next Rally
Despite the optimistic long-term outlook, technical data suggests Bitcoin may face a short-term pause. On October 23, Bitcoin traded around $111,000, gaining approximately 63% year-over-year. Nonetheless, analysts are monitoring potential correction signs before the next significant move.
One notable technical indicator is a hidden bullish divergence observed on the Relative Strength Index (RSI). Between June and October, Bitcoin’s price formed higher lows while the RSI registered lower lows—a pattern often signaling an upcoming upward trend. This very setup appeared in September, preceding a 15% surge in Bitcoin’s price.
If this pattern repeats, Bitcoin could target around $119,900, provided it clears the crucial $116,500 resistance zone.
### On-Chain Data Supports the Bullish Case
Blockchain metrics also support the prospect of another rally. Two important indicators—the Net Unrealized Profit/Loss (NUPL) ratio and the Accumulation Trend Score—show that major market players, including funds and whales, are resuming accumulation.
The NUPL ratio, which measures the portion of holders currently in profit, dropped to 0.48 in late October—a historical level previously marking the start of a 3.8% price increase. This decline suggests investors have limited motivation to sell, reducing selling pressure and signaling renewed confidence in Bitcoin’s upward potential.
### Key Levels to Watch
For now, the most critical resistance level is at $116,500. Since October 11, Bitcoin has repeatedly struggled to break above this zone. Analysts note that a daily close above $116,500 could confirm bullish momentum and pave the way toward targets of $119,700 or even $125,700.
On the downside, strong support lies around $110,050. Falling below this threshold may trigger declines toward $108,500 or $106,600.
### The Impact of Upcoming CPI Data
Beyond technical patterns, upcoming Consumer Price Index (CPI) data could significantly influence Bitcoin’s direction. A softer inflation reading would likely support higher prices, while stronger inflation could exert downward pressure on risk assets, including cryptocurrencies.
Investor Ted Pillows commented, “BTC has reclaimed the $110,000 support level. CPI data will decide the next move. I’m looking for BTC to reclaim $113,000 to $114,000 for more upside, but if this pump turns out to be a fakeout, expect another sharp correction.”
### Why Some Analysts Warn of a Deeper Drop
While many experts maintain an optimistic stance, others advise caution. Tom Lee, co-founder of Fundstrat, warns Bitcoin could still experience a significant pullback, potentially dropping as much as 50%, even with Wall Street’s backing.
Lee emphasized that institutional involvement does not eliminate market risk. “Even with Wall Street in the game, Bitcoin can still fall sharply if market conditions worsen,” he noted. Historical market cycles demonstrate that strong assets can lose half their value during corrections.
His advice to investors is clear: diversify holdings, plan strategically, and manage risk carefully.
### Conclusion
As Bitcoin navigates critical resistance and support levels amid mixed signals, market participants should stay informed and use reliable analysis to guide their strategies. Traders Union remains a trusted resource for authentic technical analysis on BTC, ETH, SOL, DOGE, and other cryptocurrencies, helping investors prepare effective crypto investment plans.
Stay tuned for updates and consider multiple perspectives to navigate the evolving cryptocurrency landscape successfully.
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