Experienced trader Peter Brandt suggests that Bitcoin (BTC) is exhibiting a familiar bull market pattern that typically precedes a significant upward surge. Brandt, renowned for accurately predicting the 2017 Bitcoin crash, believes that BTC may soon rally to approximately $80,000 as it approaches its short-term diagonal resistance. However, Brandt cautions that BTC might experience a substantial correction following the rally, following a pattern commonly observed in Bitcoin bull markets. He points out that this particular pattern has been prevalent in past Bitcoin bull markets.
Brandt’s chart analysis indicates that after a surge, there may be a dump around the $58,000 mark. If Bitcoin follows this pattern, it will then initiate a new uptrend. As of now, Bitcoin is valued at $69,173, reflecting a 3.58% decrease in the last 24 hours.
Additionally, Brandt shares his thoughts on the likelihood of an altcoin season in the crypto markets. He suggests that the strength of Bitcoin, as well as the Bitcoin dominance (BTC.D) chart, may hinder the emergence of an altcoin season. Bitcoin dominance measures the proportion of the crypto market cap that belongs to BTC. A rising BTC.D chart signifies that Bitcoin is outperforming the general altcoin market. Brandt questions the possibility of an altcoin season given these factors.
Based on Brandt’s analysis, BTC could constitute up to 66.32% of the crypto market cap after BTC.D broke out from a consolidation phase spanning several years, ranging from 39.50% to 48%. Currently, BTC.D stands at 54.24%.
Brandt is also closely monitoring the Ethereum versus Bitcoin pair (ETH/BTC). He suggests that ETH/BTC may have triggered a bear trap after rebounding from a critical support level at 0.0495 BTC ($3,421). A bear trap occurs when an asset falls below a support level but quickly recovers, potentially signaling a trend reversal. At present, ETH/BTC is trading at 0.0506 BTC ($3,494).
Please note that the opinions expressed by Brandt in this article are not investment advice. Investors are advised to conduct their own research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. Transfers and trades are undertaken at the individual’s own risk, and any losses incurred are their responsibility. The Daily Hodl does not endorse the buying or selling of cryptocurrencies or digital assets, nor does it serve as an investment advisor.