Technical analyst A.G. Thorson, known for accurately predicting gold's sharp declines in April and May of last year, has shared his latest perspective. He believes the gold bull market is not over but may undergo one final, sharp correction phase.

First, regarding gold, a short-term rebound is possible. However, after this rebound concludes, one last decline is expected before a genuine major bottom is formed. Silver tends to follow gold's movements: it rallies with gold but often falls more steeply during downturns.

Second, major bull markets often experience one severe shakeout. The gold bull markets of 2006, 2009, and 2020 all saw deep corrections midway before eventually reaching new highs. The current market may be mirroring the 2006 pattern. Back then, gold fell to its 200-day moving average—a level it has reached this week—triggering buying from technical traders and a subsequent bounce. After that rebound ended, a further sharp decline occurred before the true major bottom was established. In technical analysis, the 200-day moving average is viewed as a dividing line between bull and bear markets, closely watched by many institutions. When the price hits this level, buying typically emerges, akin to a ball bouncing after its first impact with the ground. The analyst highlighted a key resistance zone between $4,700 and $4,773. If gold fails to break above this range, the current move may only be a technical rebound, to be followed by another drop.

Third, the analyst suggests that Bitcoin "has not fallen enough." Bitcoin has broken below its 50-day moving average, which trend-following traders interpret as a loss of upward momentum. A break below $71,000 could trigger significant stop-loss selling from technical traders. Over the coming months, Bitcoin might experience a decline similar to those in 2021 and 2022, with the analyst's target around $40,000, potentially forming a cycle bottom around October.