Bitcoin
Veteran Trader Peter Brandt Makes a Sensational Argument on Bitcoin Fiat by U.Today
U.Today – Peter Brandt, a veteran trader known for his insightful market insights, recently made a compelling case for it, highlighting the potential for the eventual decline of fiat currencies. Brandt’s analysis draws on historical parallels and technical patterns to highlight Bitcoin’s growing importance on the global financial stage.
According to Brandt, the argument in favor of Bitcoin is related to the eventual destruction of fiat monetary units. To illustrate his point, Brandt shared a chart comparing Bitcoin (BTC) to the total US money supply (M1), a ratio he says remains below the December 2017 high.
Put side by side, Brandt highlights striking similarities between this chart and the (DJIA) during the Great Stagflation of the 1970s.
The 1970s were a period marked by high inflation and stagnant economic growth, a phenomenon known as stagflation. The DJIA during this period exhibited a particular pattern that Brandt believes is now reflected in Bitcoin’s performance relative to the growing supply of US dollars. This pattern, known as the inverted head and shoulders, is often interpreted as a bullish signal, suggesting further upward movement in Bitcoin’s value.
The inverted head and shoulders pattern is a technical analysis chart formation that indicates a reversal of a downtrend. It is made up of three parts: a lower point (head) flanked by two upper lower points (shoulders). When this pattern forms, it signals the potential for significant upward price movement once the price breaks through the resistance level formed by the shoulders.
In the context of Bitcoin, this pattern suggests an imminent momentum shift that could propel the cryptocurrency to new heights, just as the Dow eventually emerged from the period of stagflation.
Brandt’s point of view is not without skepticism, as he states that some market observers may disagree with the definition of the pattern as an “inverted head and shoulders continuation”. Thus, he presents an argument using many references to support his claims.
The identified inverted head and shoulders pattern, if validated, could be technical confirmation of a much larger fundamental shift — one that could redefine the very concept of money in the coming years.
At the time of writing, BTC is trading at $67,722.