Peter Brandt Predicts Massive Bitcoin Breakout
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Written by
Yana Levkovich - Updated 2024-08-27 10:41:34
Veteran trader Peter Brandt, widely recognized for accurately predicting the 2018 Bitcoin crash, now believes that Bitcoin (BTC) is on the verge of a significant surge following a lengthy correction period.
In a recent blog post, Brandt disclosed that he has opened long positions in Bitcoin. He anticipates that BTC might soon break out of a “megaphone” pattern. This technical formation could indicate a continuation of the bullish trend, particularly if the price manages to surpass its diagonal resistance level.
“The dominant chart construction on the weekly graph is a five-month broadening triangle or megaphone. A major breakout could be pending.
The daily chart exhibits a possible completed inverted head and shoulders that is part of the broader congestion. I bought a 2.7 BTC position with a risk of 40 basis points and a protective stop under Friday’s low. This is an anticipatory position of a pending larger breakout.”
Brandt has highlighted that Bitcoin appears strong after successfully breaking through an “inverse head and shoulders” pattern. This pattern, found within the larger megaphone structure, typically signals a bullish market trend. It suggests that traders are increasingly confident and are purchasing Bitcoin even before it revisits previous low points.
According to Brandt’s analysis, Bitcoin could potentially break out of the large megaphone pattern if it can overcome the resistance level near $72,000.
In an update shared with his 736,200 followers on the social media platform X last week, Brandt noted that Bitcoin’s trend remains uncertain as long as it continues to trade within the boundaries of the megaphone pattern. He emphasized that a clear direction will only be established once BTC breaks free from this formation.
“Weekly and daily graphs continue to form a megaphone or broadening triangle pattern in BTC. No declaration of the next trend yet BTC.”
At the time of writing, Bitcoin is trading at $63,046, reflecting a slight decrease of over 1% for the day. Despite this, Brandt’s observations suggest that BTC might be on the cusp of a significant upward move if key resistance levels are breached.
