U.Today

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.

Key Analysis

At the heart of Brandt’s analysis is a detailed look at the key elements within this inverted head and shoulders pattern:
– Neckline: 32.5
– Left Shoulder Low: 14.2
– Right Shoulder: Forming a bull flag.

It looks like the ratio might decline into the “high teens” before any breakout occurs.

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 huge increase in the value of Bitcoin compared to gold but also demonstrate that more individuals see Bitcoin as a better store of value.

This article was originally published on U.Today