$XAUT
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Dear, keep this guiding principle in mind, as it is one of the fundamentals that should not be overlooked. Any asset, commodity, or hedging instrument that undergoes a sharp rally and reaches inflated price levels without a meaningful correction must eventually go through a cycle that restores balance and corrects the imbalance, bringing the price back to its fair-value range, from which a new life cycle begins.
If you want a real-world example of this principle, look at Bitcoin.
It rose from a liquidity low of 49,000, driven by strong momentum to new highs, reaching 126,000 with powerful upward momentum and without a sufficient correction to restore balance to the move.
At the time, talk of the price returning to the 90,000 level was dismissed as fantasy; some even considered it impossible. But what we see today, about two and a half years after that journey began, is a return to test fair-value price zones and correct the imbalance that accumulated during the rally cycle.
In short: the market may postpone rebalancing, but it cannot ignore its imbalances forever. Every surge has a correction cycle, and every cycle has a point at which the price returns to balance and starts anew.
And God knows best.
Best of luck to everyone.
@
Dear, keep this guiding principle in mind, as it is one of the fundamentals that should not be overlooked. Any asset, commodity, or hedging instrument that undergoes a sharp rally and reaches inflated price levels without a meaningful correction must eventually go through a cycle that restores balance and corrects the imbalance, bringing the price back to its fair-value range, from which a new life cycle begins.
If you want a real-world example of this principle, look at Bitcoin.
It rose from a liquidity low of 49,000, driven by strong momentum to new highs, reaching 126,000 with powerful upward momentum and without a sufficient correction to restore balance to the move.
At the time, talk of the price returning to the 90,000 level was dismissed as fantasy; some even considered it impossible. But what we see today, about two and a half years after that journey began, is a return to test fair-value price zones and correct the imbalance that accumulated during the rally cycle.
In short: the market may postpone rebalancing, but it cannot ignore its imbalances forever. Every surge has a correction cycle, and every cycle has a point at which the price returns to balance and starts anew.
And God knows best.
Best of luck to everyone.
