Veteran Trader Peter Brandt Claims Bitcoin to Eclipse Fiat

banner-image

Seasoned trader Peter Brandt has recently expressed a strong case for Bitcoin (BTC), suggesting that fiat currencies are on a path toward decline. Brandt’s analysis uses historical contexts and technical chart patterns to emphasize Bitcoin’s increasing prominence in global finance.

Brandt’s Case for the Decline of Fiat Currencies

Brandt contends that fiat currencies are destined for eventual erosion. He supports this argument by comparing Bitcoin (BTC) with the total U.S. money supply (M1). Based on available data, he points out that the current ratio has not surpassed the peak last seen in December 2017.

In his analysis, Brandt finds noteworthy resemblances between this chart and the Dow Jones Industrial Average (DJIA) during the 1970s stagflation—a period marked by rampant inflation and sluggish economic growth.

The seasoned trader identifies an inverted head and shoulders pattern in both instances. Notably, this formation is typically interpreted as a bullish signal, hinting at potential upward momentum for Bitcoin. Many in the crypto world have bullish predictions for Bitcoin with former Twitter CEO, Jack Dorsey making a bold prediction for its future price. Dorsey sees Bitcoin reaching $1 million by the year 2030.

Technical Analysis and Historical Patterns

Brandt maintains that the technical analysis pattern, that is, the inverted head and shoulders, suggests a reversal of a previous downward trend. It comprises a central trough (head) flanked by two higher troughs (shoulders). When the price surpasses the resistance level at the shoulders, it often indicates a significant upward movement.

For Bitcoin, this pattern hints at a potential shift in momentum that could drive its value to new heights, analogous to the post-stagflation recovery seen in the DJIA.

Skepticism and Historical Validation

Brandt acknowledges that his interpretation of the pattern as a “continuation inverted head and shoulders” might face skepticism from some market analysts. To substantiate his viewpoint, Brandt references multiple sources.

Notably, he mentions that Schabacker (1934) and Edwards and Magee (1948) acknowledge this pattern by name during their time. He seems to base his argument on historical trends. If validated, this inverted head and shoulders pattern could signify a profound shift, potentially redefining the concept of money in the future.

June 16, 2024

$GFOX Holds Firm Defying Meme Coin Meltdown

June 16, 2024

DogWifHat Price Prediction: Experts Forecast Major Gains for Rising Meme Coin..

June 16, 2024

Binance co-founder Yin He's post highlighted a broader issue that has..

ads-image ads-image