Silver just dropped to $79, down 35% from its January high of $121. Most traders see red and feel fear. But one analyst with a track record of calling macro moves says fear is exactly the wrong emotion right now.
Dr. Potassium, a popular macro analyst on X, just dropped a thread that cuts through the noise. His message is simple: accumulation phases are designed to test resolve and send sentiment into the gutter. Now is not the time to be fearful. Fear was reasonable at $121. At $79, the appropriate feeling is excitement.
What you'll learn 👉
What the Silver Chart Shows
Look at the weekly chart Dr. Potassium shared. The silver price made a massive run to $121 in January, then crashed hard to $64. That 46% drop shook out weak hands. Since then, price has been recovering and consolidating, currently sitting at $79.56.
The chart shows a clear EOY target range marked between $145 and $205. That’s not a random guess. Those levels align with historical resistance zones and Fibonacci extensions from the previous move.
Below current price, support sits at $64; the January low that held. Below that, $55 and $39 are marked as longer-term floors. But Dr. Potassium isn’t expecting a retest of those levels.
Dr. Potassium makes a psychological point that matters. At $121, fear made sense. The market was extended, sentiment was euphoric, and a pullback was overdue. But at $79, after a 35% drop, the risk-reward flips.
“The price is already -35% down off the high,” he notes. “Folks sidelined for another -35% leg down are going to be disappointed when they realize recency bias made them miss the next big move.”
Recency bias is real. Traders look at the drop from $121 to $79 and assume the trend is down. They forget that markets cycle. They forget that corrections create opportunities.
The Short-Term Picture
Yesterday, Dr. Potassium added more context on where silver goes next:
“Silver 🥈 — let me be clear: it could take several days or into next week to move back up to $85.31 and paint a break out from the triangle. It will be choppy as hell and people will doubt it the whole way.”
He’s warning traders not to expect a straight line up. The breakout from the current triangle pattern might take time. Price could chop around, testing patience, shaking out more weak hands.
“Anyone expecting a rocket-ship reversal in these conditions is going to be as disappointed as people expecting it to make a new low lower than $64.”
That’s the key. He’s calling for accumulation. Choppy silver price action that slowly grinds higher, breaking resistance at $85.31, then building toward bigger targets.
“This is an accumulation period. It’s for accumulating. These markets are too vicious to make anything easy, so you have to keep yourself at ease.”
That’s the takeaway. Silver at $79 isn’t supposed to feel good. Accumulation never does. It’s supposed to feel uncertain, uncomfortable, and doubtful. That’s how smart money accumulates before the next leg up.
The End of Year Target
Dr. Potassium’s chart shows an EOY target range of $145 to $205. That’s 83% to 159% upside from current levels.
If silver follows historical patterns after a sharp correction, those numbers aren’t crazy. The metal has real fundamentals backing it; supply deficits, industrial demand, and a macro environment that favors hard assets.
The immediate level to watch is $85.31. A clean break above that confirms the triangle breakout. From there, the path toward $105 opens up, then $145, and eventually the $205 EOY target.
Support sits at $79, then $74, then $64. A drop below $64 would invalidate the bullish setup, but Dr. Potassium sees that as unlikely.
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