Veteran trader Peter Brandt recently asked a thought-provoking question to his 729,500 followers on X (formerly Twitter), asking whether the current Bitcoin chart will develop into a daily fractal chart similar to Gold’s performance during the 2008-2009 or 2020 periods -2024. .
This investigation comes because Bitcoin’s price chart depicts an inverse head and shoulders pattern formation, a technical pattern often seen as a bullish indicator and which preceded gold’s breakout in the above-mentioned periods.
The inverse head and shoulders pattern is a well-known technical analysis pattern that typically signals a reversal from a downtrend to an uptrend. This pattern consists of three main components: the left shoulder, which represents a drop in price followed by a rise, the second a head, which represents a more significant drop in price, followed by another rise. The third is the right shoulder, which has a minor decline, followed by another rise.
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The current Bitcoin chart will become a daily chart fractal of….
Gold 2008-2009
Gold 2020-2024 pic.twitter.com/8kanoBzBk4— Peter Brandt (@PeterLBrandt) June 18, 2024
Bitcoin is on the verge of completing this pattern, currently forming the right shoulder, according to the BTC chart presented by Brandt, sparking interest in the potential implications for future price movements.
Brandt’s question centers on whether Bitcoin’s current chart will follow gold’s fractal patterns during two distinct periods, 2008-2009 and 2020-2024, which saw gold break out of an inverse head-and-shoulders pattern.
The veteran trader presented two gold charts from both periods; the gold era from 2008 to 2009 showed much more substantial gains than the 2020 to 2024 period, which showed smaller gains.
The timing of Brandt’s demand coincides with a period of uncertainty, with Bitcoin falling to one-month lows as outflows from digital asset investment products and the possibility of higher US funding costs for a longer period weighed on the cryptocurrency market. At the time of writing, BTC fell 1.75% over the past 24 hours to $64,441.
As Bitcoin’s chart continues to develop, traders and investors are carefully watching for signs of what historical pattern it may follow. It remains to be seen whether Bitcoin will mirror gold’s performance over the 2008-2009 or 2020-2024 period.
