Experienced trader Peter Brandt believes that one of the top 10 alternative cryptocurrencies is indicating a significant bearish signal against Bitcoin (BTC).
Brandt shares with his 732,800 followers on the social media platform X that the payments network XRP may be forming a head and shoulders pattern against Bitcoin (XRP/BTC) on the weekly chart. In technical analysis, a head and shoulders pattern is typically seen as a bearish reversal pattern.
Brandt predicts that XRP/BTC could experience a collapse if the pair falls below its multi-cycle support level of approximately 0.000008 BTC. He states, “This chart pattern is a multi-year complex head and shoulders. If this chart breaks below the lower support line, then all accounts associated with XRP will slowly vanish and never be seen again.”
Currently, XRP/BTC is trading at 0.00000916 BTC ($0.56).
Moving on, Brandt points out that Bitcoin is displaying consecutive patterns that suggest weakness for the leading cryptocurrency. He states, “The series of lower highs and lower lows continues for BTC.”
Brandt also examines Bitcoin’s performance against gold, specifically the BTC/gold ratio. He suggests that the current ratio of 26 could potentially drop as low as 16, while still maintaining a positive long-term outlook for Bitcoin against the precious metal.
“The battle for store of value is historic. The BTC/gold chart is a classic example of charting principles. The ability to interpret flexibly is more important than being dogmatic. Currently at 26, BTC could (not will) experience a significant drop against gold, potentially as low as 16, without changing the long-term bullish case for Bitcoin versus gold. Looking at the longest-term chart, BTC could (not will) reach over 150. I believe in owning both gold and Bitcoin. Being dogmatic about either one is akin to fool’s gold.”
Bitcoin is currently trading at $61,970, representing a decrease of over 5% in the past 24 hours.
