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Legendary Trader Peter Brandt Makes Crucial Bitcoin-to-Gold Comparison

Tue, 18/06/2024 – 15:39

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Veteran trader Peter Brandt recently posed a thought-provoking question to his 729,500 followers on X (formerly Twitter), asking whether the current Bitcoin chart will develop into a daily chart fractal resembling Gold’s performance during either the 2008-2009 or the 2020-2024 periods.

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This inquiry comes as Bitcoin’s price chart depicts an inverse head and shoulders pattern formation, a technical pattern often seen as a bullish indicator, and which preceded Gold’s breakout in the aforementioned periods.

The inverse head and shoulders pattern is a well-known technical analysis formation that typically signals a reversal from a downtrend to an uptrend. This pattern consists of three main components: the left shoulder, which is a price decline followed by a rise, the second a head, which is a more significant price decline, followed by another rise. Third is the right shoulder, which is a smaller decline, followed by another rise.

Bitcoin is in the process of completing this pattern, currently forming the right shoulder, according to the BTC chart presented by Brandt, sparking interest in the potential implications for future price movements.

Brandt’s question centers on whether Bitcoin’s current chart will follow the fractal patterns of Gold during two distinct periods 2008-2009 and 2020-2024, which saw Gold break out from an inverse head and shoulder pattern.

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The veteran trader presented two Gold charts from both periods; the 2008 to 2009 era for Gold showed much more substantial gains compared to 2020-2024, which showed lesser gains.

The timing of Brandt’s question coincides with a period of uncertainty, with Bitcoin falling to a one-month low as outflows from digital-asset investment products and the possibility of higher-for-longer U.S. borrowing costs weighed down the cryptocurrency market. At the time of writing, BTC was down 1.75% in the last 24 hours to $64,441.

As Bitcoin’s chart continues to develop, traders and investors are keenly watching for signs of which historical pattern it might follow. Whether Bitcoin will mirror Gold’s performance from 2008-2009 or 2020-2024 remains to be seen.

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