Signals of the market peak! Are gold and silver already on alert?
From a technical perspective, the most typical feature of the high-level selling phase is an unusually sharp drop in a short period, often referred to as a headless plunge.
This type of movement has a deeper decline and faster speed, far exceeding normal fluctuations, such as $BTC , which once plummeted by 20,000 USD in a single day.
The core logic is that such abrupt declines at high levels, which do not conform to the usual rhythm, are often not ordinary pullbacks but rather the result of emotions and liquidity being rapidly released simultaneously.
Even if there is a rebound after such movements, it is often more of a technical repair rather than a trend reversal.
Looking back at the recent movements of gold and silver: gold dropped from 5650 to 4463 in just 5 days, while silver fell from 121 to 64, with a weekly decline of 50%.
Recently, gold again plummeted from 5462 to 4154, and silver dropped from 97 to 61, with gold's weekly chart showing an M-top trend.
Once this abnormal accelerated decline occurs, subsequent rebounds need to be approached with high caution and should not be simply seen as a new starting point for an upward trend.
We have reason to suspect that gold and silver have already peaked; however, the distribution cycle for gold is relatively long, and those who are trapped still have a chance to rebound to around 4800 to reduce their positions.
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