It doesn’t matter if it’s Bitcoin, or other assets. Bottoms are often difficult to identify until much later. This is except if you’re Peter Brandt, a career commodities trader who has nearly 50 years experience in the market.
Brandt uses a fresh comparison to show how the bottom of the crypto bear markets he foresaw a year ago is compared with the present pattern which has recently seen Bitcoin surpass $45,000 Here is the full comparison along with why it might be worth listening to Brandt’s words of wisdom.
A 50-Year-Old Trade Veteran Says Bitcoin Could Be Bottom
In a new tweetPeter Brandt (founder of The Factor Report) compares the bear market bottom in late 2018 to early 2019, with current Bitcoin price action.
Brandt specifically mentions the ascending triangular pattern Bitcoin appears to have broken, as well its similarity to what ended up being the ultimate price floor.
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The classical chartist cites reference to what is considered “the real bible of technical analysis” – the book How to Forecast Technical Analysis and Profits from Stock MarketsRichard W. Schabacker. Expert technician Richard W. Schabacker even referred to the page number that contains more information about the pattern.
In a recreation of Brandt’s chart below, the two potential Bitcoin bottoms are compared directly. The ascending triangle is not the only thing that’s interesting. Each bottom was also characterized by an Adam-Eve-like double bottom and occurred on a trend line almost back a decade.
Brandt's image is compared with another good look. Source: TradingView.com.| Source: BTCUSD on TradingView.com
Why Peter Brandt’s Crypto Comparison Holds Weight
Because of Brandt’s sometimes bold calls that go against the hive mind of crypto Twitter, the trader often gets labeled a “hater.” In reality, he regularly says Bitcoin is among the most remarkable markets he’s ever traded and was among the first to call attention to the parabola building in 2016 and 2017.
Brandt was first to warn that there was more to the downturn than many were willing to admit when the parabolic advancement was broken in early 2018 and December 2017. Brandt wanted a complete 80% or greater retrace at the top cryptocurrency price per coin almost one full year before the target was reached.
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Unlike what is commonly seen throughout the crypto world, Brandt doesn’t rely on complex technical indicators, buy or sell signals, or on-chain metrics. He only uses straight and curved lines to indicate a contained trend, often with high accuracy. Trend changes often follow when these lines are crossed.
Brandt might be calling out the possibility of a new trend with Bitcoin surpassing its peak at an ascending triangular trend line. It could prove to be crucial that you pay more attention to how each crypto bottom compares.
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Featured image taken from iStockPhoto. Charts from TradingView.com