Veteran commodities trader Peter Brandt says Bitcoin (BTC) is showing indications that it is gearing up to massively outperform gold.
According to Brandt, Bitcoin priced in gold (BTC/GLD) is printing a multi-year inverse head-and-shoulders (H&S) pattern, indicating that BTC is preparing to outpace the precious metal.
“Major reverse continuation of H&S in the ratio between BTC and GC_F”
A reverse H&S pattern consists of a first shoulder, a head, and another shoulder, with the second shoulder representing a failed attempt at new price lows and a signal of a trend reversal.
Brandt notes that before Bitcoin would perform much higher against gold, it could still underperform in the near future before reaching a good bullish setup.
“The BTC/GCF ratio could dip into the high teens, but a huge continuation of the inverse H&S is forming – in Bitcoin’s favor”
Brandt’s chart suggests that BTC could be preparing for a rise to around 123x the gold price. At the time of writing, Bitcoin is trading at $54,495.
But for now, Brandt say that Bitcoin is in a “prolonged correction” that is currently causing significant pain for the BTC bulls.
“The last time Bitcoin closed lower than the current price was February 25, 2024. There are two dimensions to the declines: price and duration. Long corrections can cause more emotional damage than steep corrections.”
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