With decades of trading experience dating back to the 1970s, veteran trader Peter Brandt has recently published an outlook that examines Bitcoin's performance relative to gold, drawing attention to a bullish technical pattern that could signal a major price spike for Bitcoin (BTC).
This pattern often signals a big market reversal, suggesting that the first cryptocurrency could soon surge against the precious metal.
At the heart of Brandt's analysis is a detailed look at the key elements within this inverted head and shoulders pattern: The neckline is at 32.5, the left shoulder low is at 14.2, and the right shoulder forming a bull flag. It looks like the ratio might decline into the "high teens" before any breakout occurs.
When I look at chart of Bitcoin/Gold ratio, here is how I view it: $GC_G $BTC $BTCXAU
1. Continuation inverted H&S pattern, neckline at 32.5 to 1
2. Left shoulder low at 14.2 to 1
3. Right shoulder forming flag
4. Could decline into high teens to 1
5. Target 123 to 1 pic.twitter.com/VKvsDqwkuU
— Peter Brandt (@PeterLBrandt) September 21, 2024
If Brandt's prediction is correct and the ratio does indeed rise from the current 23.85 to 123.75, as projected in the attached chart, it will represent a 518% increase in the price of Bitcoin per gold from current levels.
Bitcoin versus gold
It's interesting to note that the relationship between Bitcoin and gold has been observed by traders for some time. However, Brandt's recent analysis suggests that the cryptocurrency may be set to outperform gold on an even more significant scale, with the ratio indicating a possible dramatic shift in favor of BTC.
If this happens, it will not only be a big jump in the value of the major cryptocurrency compared to gold, but it will also show that more and more people think that Bitcoin is becoming a better place to store your money.
