Peter Brandt Hints at Major Bitcoin Rally, Cites Gold’s Past Bull Runs

Bitcoin’s Bullish Pattern Signals Potential Major Price Movement. On June 21, 2024, seasoned trader Peter Brandt highlighted a bullish “Inverse Head and Shoulders” pattern in Bitcoin’s price chart. This pattern mirrors historical gold rallies, indicating potential for a significant price surge. Brandt’s comparison of Bitcoin’s current market structure with previous gold bull phases suggests that Bitcoin might be on the verge of a major upward move.

Bitcoin’s Inverse Head and Shoulders Pattern

Brandt focuses on the “Inverse Head and Shoulders” pattern visible on Bitcoin’s price chart. This pattern is similar to those that signaled past bull runs in gold, including the SPDR Gold Trust (GLD). According to Brandt, we might be witnessing the beginning of a big move that could resemble gold’s significant market upswings.

Gold’s Historical Bull Patterns

The GLD chart from 2008 to 2024 shows a substantial price action forming an “Inverse Head and Shoulders” pattern from 2020 to 2023. This bullish reversal formation was seen at resistance levels of $235.25 and $244.53, with the neckline at $193.58. The ADX and positive moving average crossover also indicated a likely continuation of gold’s price rise.

Bitcoin’s Current Trend

Similarly, a shorter time range on Bitcoin shows an “Inverse Head and Shoulders” formation. The consolidation phase is between $55,000 and $60,000, where the 100-day EMA has provided strong support. The Relative Strength Index (RSI) is 50.71, suggesting the market is neither overbought nor oversold. This pattern indicates a possible massive price surge if Bitcoin breaks through the neckline level.

BTC Market Sentiment and Accumulation Trends

Market sentiment plays a crucial role in this analysis. Analyst BitcoinHabebe points to a 25% price rebound from the $57,000 to $58,000 level as a sign of buyers’ interest. Another analyst, MikybullCrypto, notes a “cup and handle” pattern on Bitcoin’s macro timeframe, implying a breakout that may be the final bull run of the current cycle. Furthermore, Bitcoin recently touched the 128-day moving average (DMA), a crucial level typically seen in bull markets.

On-Chain Data and Whales’ Activity

On-chain data also supports the bullish outlook. Recent price dips have seen whales transfer 20,000 BTC to accumulation addresses, the highest on record. This buy-the-dip activity shows that investors remain confident in Bitcoin’s capacity to rise, even when prices have been falling, and the overall market has weakened.

Current Price Action and Short-Term Predictions

Bitcoin’s price chart remains critical as it oscillates between key support and resistance zones. Analyst Jelle points out that the market is still ranging, having taken out local lows and highs without setting new lows. This situation indicates that the market is at a crossroads, and whether it will rise to $67,000 or fall below $65,000 in the coming weeks depends on the outcome.

Recent Trends and Federal Reserve’s Influence

Recently, Bitcoin traded below $65,000 due to outflows from U.S. spot BTC ETFs, partly influenced by the Federal Reserve’s hawkish approach. Despite this, significant accumulation and positive on-chain metrics offer a bullish outlook. Michael Saylor’s MicroStrategy’s plans to raise funds to purchase more Bitcoin also boost future price movement expectations.

Bitcoin’s Recent Performance

Meanwhile, Bitcoin’s price has been bearish in the last day, swinging between an intra-day high of $67,179 and a low of $64,422.23. As of press time, BTC was trading at $64,576, a 1.6% decline from the resistance level.

Conclusion

Bitcoin’s current market structure, highlighted by the “Inverse Head and Shoulders” pattern, suggests a potential major price movement. Comparisons to historical gold rallies provide a bullish outlook. Market sentiment, on-chain data, and accumulation trends all point to a possible significant upward move for Bitcoin. As the market remains at a critical juncture, investors and analysts are watching closely to see if Bitcoin will break through key resistance levels and initiate a new bull run.

Read more

Leave a Comment