Veteran trader predicts Bitcoin may initiate a stock market surge reminiscent of the 1980s
Renowned trader Peter Brandt is suggesting that Bitcoin (BTC) may experience a major breakout, drawing comparisons to a significant surge in the stock market in the mid-1980s. Brandt has pointed out a striking similarity between a current Bitcoin chart and a pattern observed in the stock market during the mid-1980s. This period saw a significant breakout and Brandt believes that BTC could follow a similar trajectory.
Brandt specifically focuses on the BTC/WM1NS chart, which compares Bitcoin’s value against the total money supply in the US economy. He notes that this chart exhibits an inverted head and shoulders pattern, indicating that buyers are no longer waiting for the price to drop before entering the market. A breakout in this chart would suggest that Bitcoin’s value is outpacing the growing amount of US dollars.
Brandt believes that the similarities in chart structure between Bitcoin and the stock market in the 1970s are significant. He suggests that if the inverted head and shoulders pattern continues, it could signal a major breakout for Bitcoin.
Adding to the bullish sentiment, crypto strategist TechDev notes that Bitcoin’s trading range on the five-day chart is at its tightest level in eight years. This suggests that an impending breakout could lead to steep and rapid rallies. TechDev also highlights the recent “textbook breakout” in the BTC/WM1NS chart, which could ignite a parabolic surge and potentially end this cycle with a blow-off top similar to previous bull markets.
At the time of writing, Bitcoin is trading at $70,784, showing a 24-hour increase of 2.5%. With historical market patterns and technical indicators suggesting bullish momentum, Bitcoin could be on the cusp of a significant surge. The coming months will be crucial in determining whether these optimistic predictions come to fruition and potentially reshape the financial landscape.
Disclaimer: The content of this article should not be considered investment advice. Investing in Bitcoin carries risks, and investors should be aware that their capital is at risk.
