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, drawing attention to a bullish technical pattern that could signal a major surge in the price of Bitcoin (BTC).
This pattern often signals a major market reversal, suggesting that the first-ever cryptocurrency could soon rise against the precious metal.
At the heart of Brandt's analysis is a detailed look at the key elements within this inverted head and shoulders pattern: the neckline is at 32.5, the low of the left shoulder is at 14.2, and the right shoulder forms a bullish flag. It looks like the ratio could drop to the “high teens” before a breakout occurs.
If Brandt’s prediction is correct and the ratio does indeed increase 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 is interesting to note that traders have been eyeing the relationship between Bitcoin and gold for some time. However, Brandt’s recent analysis suggests that the cryptocurrency could outperform gold on an even more significant scale, and the relationship indicates a potential drastic shift in BTC’s favor.
If this happens, it will not only be a huge jump in the value of the leading cryptocurrency compared to gold, but it will also show that more and more people think Bitcoin is becoming a better place to store their money.
This article was originally published on U.Today
