Veteran Trader Peter Brandt Forecasts Major Shift in Bitcoin-Gold Trend

As a seasoned researcher with over two decades of trading experience under my belt, I find Peter Brandt’s insights on the Bitcoin/Gold ratio intriguing and potentially valuable. His technical analysis of the parallel channel pattern suggests that we might be approaching a local low in this ratio, which could signal an opportunity for traders to enter the market.


As an analyst, I’ve been following the market trends closely, and I recently took note of veteran trader Peter Brandt’s analysis on the Bitcoin/Gold ratio. He suggests that we might be approaching a potential tradable bottom in this ratio.

In a recent tweet, Brandt provided an analysis of the Bitcoin/Gold ratio, which compares the price of Bitcoin to Gold. This ratio is a key indicator for traders looking to understand the relative strength of Bitcoin against the traditional safe-haven asset, Gold. Brandt accompanied the tweet with a chart that showed a pattern resembling a parallel channel, with Bitcoin trending down against Gold.

There may be a tradable local low in the Bitcoin/Gold ratio $BTC $XAU — Peter Brandt (@PeterLBrandt) September 13, 2024

A parallel channel is a technical tool for mapping the relationship between two lines – one line serving as resistance (the upper boundary) and another as support (the lower boundary) – when tracking Bitcoin Gold’s price movements. This pattern often takes the form of a downward-sloping channel, which analysts use to forecast broader shifts in trends.

The technical pattern hints at a decreasing trend for the Bitcoin Gold ratio, yet it also signals that this decline might soon hit a base point, potentially triggering an upturn.

Bitcoin decouples from Gold

Based on a recent study by CryptoQuant, it appears that the price of Bitcoin is no longer closely tied to the price of gold. In fact, as gold reaches new record highs, the price of Bitcoin has actually been decreasing.

The cost of Bitcoin has dropped recently, whereas Gold’s price has reached a new peak, leading to a situation where these two assets seem to move in opposite directions, or displaying a negative relationship.

A period of negative correlation between Bitcoin and Gold, with Gold rising and Bitcoin falling, usually indicates a risk-averse environment in which investors choose traditional safe-haven assets like Gold over speculative assets like Bitcoin.

Currently, at the point of composition, Bitcoin (BTC) had increased by 3.17% over the past 24 hours to reach $59,773. Over the weekend, the price of Bitcoin saw its highest point since early September, as traders grew more optimistic that the Federal Reserve’s upcoming meeting could result in a substantial reduction in interest rates.

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2024-09-14 17:31