U.Today

With decades of trading experience dating back to the 1970s, veteran trader Peter Brandt has recently published an outlook examining Bitcoin's performance relative to gold. He draws attention to a bullish technical pattern that could signal a major price spike for Bitcoin (BTC).

This pattern often indicates a significant market reversal, suggesting the first cryptocurrency could soon surge against the precious metal.

Key Analysis

At the heart of Brandt's analysis is a detailed look at key elements within this inverted head and shoulders pattern:
– The neckline is at 32.5
– The left shoulder low is at 14.2
– The right shoulder forms a bull flag

It appears the ratio might decline into the "high teens" before any breakout occurs.

If Brandt's prediction holds, and the ratio rises from the current 23.85 to 123.75, as projected in the attached chart, it would represent a 518% increase in the price of Bitcoin relative to gold from current levels.

Bitcoin versus Gold

The relationship between Bitcoin and gold has been observed by traders for some time. However, Brandt's analysis suggests the cryptocurrency may soon outperform gold significantly. If this occurs, it would not only represent a substantial increase in Bitcoin's value compared to gold but also indicate that more people view Bitcoin as a better store of value.

This article was originally published on U.Today