U.Today – Veteran trader Peter Brandt recently posed a thought-provoking question to his 729,500 followers on the period 2008-2009 or 2020. -2024 periods.
This query comes as the Bitcoin price chart shows an inverse head and shoulders pattern formation, a technical pattern often seen as a bullish indicator, and which preceded the gold breakout in the aforementioned periods.
The inverse head and shoulders pattern is a well-known technical analysis formation that typically indicates a reversal from a downtrend to an uptrend. This pattern consists of three main components: the left shoulder, which is a price drop followed by a rise, the second a left shoulder, which is a more significant price drop, followed by another rise. Third is the right shoulder, which shows a minor drop, followed by another rise.
Bitcoin is in the process of completing this pattern and is currently forming the right shoulder, according to the BTC chart presented by Brandt, generating interest in the possible implications for future price movements.
Brandt's question centers on whether the current Bitcoin chart will follow gold's fractal patterns during two distinct periods, 2008-2009 and 2020-2024, in which gold broke away from an inverse head and shoulders pattern.
The veteran trader presented two gold charts from both periods; The 2008 to 2009 era for gold showed much more substantial gains compared to 2020-2024, which showed smaller gains.
The timing of Brandt's question coincides with a period of uncertainty, with Bitcoin falling to a one-month low as outflows of digital asset investment products and the potential for higher US borrowing costs and for a longer time they weighed on the cryptocurrency market. At the time of writing, BTC was down 1.75% in the last 24 hours to $64,441.
As the Bitcoin chart continues to develop, traders and investors are watching for signs of what historical pattern it might follow. It remains to be seen whether Bitcoin will mirror gold's performance of 2008-2009 or 2020-2024.
This article was originally published on U.Today.
