Veteran commodities trader Peter Brandt says that Bitcoin (BTC) is flashing hints that it is gearing up to massively outperform gold.
According to Brandt, Bitcoin priced in gold (BTC/GLD) is printing a multi-year inverted head and shoulders (H&S) pattern, suggesting that BTC preparing to run faster than the precious metal.
“Massive inverted continuation H&S forming in the ratio between BTC and GC_F”
An inverted H&S pattern consists of a first shoulder, a head and another shoulder, with the second shoulder representing a failed attempt at new price lows and a signal of a trend reversal.
Brandt notes that before running much higher against gold, Bitcoin could still underperform in the immediate future before reaching a proper bullish setup.
“The BTC/GCF ratio could dip into the high teens, but massive continuation inverted H&S is forming – favoring Bitcoin”
Brandt’s chart suggests that BTC could be gearing up for a surge to about 123x the price of gold. At time of writing, Bitcoin is trading for $54,495.
But for now, Brandt says that Bitcoin is in a “prolonged correction” that is currently causing significant pain for BTC bulls.
“The last time Bitcoin closed lower than the present price was February 25, 2024. There are two dimensions to drawdowns – price and duration. Prolonged corrections can cause more emotional damage than can steep corrections.”
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