Veteran Trader Predicts Bitcoin May Ignite a Stock Market Surge Reminiscent of the 1980s Boom

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    <p class="paragraph">Acclaimed trader Peter Brandt suggests that Bitcoin (<a target="_blank" href="https://finbold.com/cryptocurrency/bitcoin/" rel="noreferrer noopener">BTC</a>) may be poised for an important breakout, reminiscent of the stock market's considerable rise in the 1980s.</p>

    <p class="paragraph">Brandt posits that BTC's chart patterns echo those that led up to enduring <a target="_blank" href="https://finbold.com/guide/bull-market-definition/" rel="noreferrer noopener">bull markets</a> in the past, indicating the cryptocurrency could embark on a comparable path.</p>

    <p class="paragraph">In a recent post on platform X (originally from Twitter), esteemed trader Peter Brandt pointed out a striking resemblance between Bitcoin's current pricing charts and a pattern from the stock market in the mid-1980s that signaled a major market rally.</p>

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            <blockquote class="twitter-tweet" data-width="500" data-dnt="true">
                <p lang="en" dir="ltr">Bitcoin's relation to the eventual decline of fiat currencies like the <a target="_blank" href="https://twitter.com/search?q=%24USD&src=ctag&ref_src=twsrc%5Etfw">$USD</a> is fascinating. This chart shows BTC's price against the US total money stock (M1). Currently, the ratio is still below its Dec 2017 peak. The similarity in the chart patterns is noteworthy… <a target="_blank" href="https://t.co/yQEAm3lMAX">pic.twitter.com/yQEAm3lMAX</a></p>
                — Peter Brandt (@PeterLBrandt) <a target="_blank" href="https://twitter.com/PeterLBrandt/status/1796981137442836769?ref_src=twsrc%5Etfw">June 1, 2024</a>
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    <p class="paragraph">Brandt examines the comparative chart of Bitcoin against the <a target="_blank" href="https://fred.stlouisfed.org/series/WM1NS" rel="noreferrer noopener nofollow">M1 money supply</a> (BTC/WM1NS), showing Bitcoin's valuation alongside the US total monetary base.</p>

    <p class="paragraph">He contends that the BTC/WM1NS chart resembles a patterning that foretold a bull market in the Dow Jones Industrial Average (DJIA) during the 1970s, which brought an end to the stagflation period.</p>

    <h3 class="wp-block-heading" id="h-the-bullish-pattern-inverted-head-and-shoulders"><strong>The bullish pattern: Inverted head and shoulders</strong></h3>

    <p class="paragraph">Brandt observes an inverted head and shoulders formation on the BTC/WM1NS chart. This bullish trend implies that traders are more inclined to step in before prices hit bottom levels again.</p>

    <p class="paragraph">A breakout in this chart may suggest that Bitcoin's growth is surging ahead of the expanding US dollar volume.</p>

    <p class="paragraph">Bitcoin's current positioning against the swelling supply of US dollars has a remarkable congruence to the pattern seen in the DJIA's chart during the 1970s. This could be a precursor to a noteworthy Bitcoin rally.</p>

    <h2 class="wp-block-heading" id="h-techdev-s-supporting-analysis">TechDev’s supporting analysis</h2>

    <p class="paragraph">Crypto analyst TechDev sees further evidence of a bullish forecast, suggesting that BTC is bracing for a dramatic escalation in price. According to TechDev, Bitcoin's trading band on the five-day chart is the narrowest it has been in eight years, indicating an impending breakout could result in quick, sharp increases. TechDev also notes that the BTC versus M1 chart has experienced a "textbook breakout."</p>

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    <p class="paragraph">This surge, per TechDev, might spark off a meteoric rise, potentially ending the cycle with a steep peak akin to those observed in the 2017, 2015, and 2013 bull markets.</p>

    <h2 class="wp-block-heading" id="btc-price-analysis">BTC price analysis</h2>

    <p class="paragraph">Currently, Bitcoin (BTC) is quoted at $70,784, registering a growth of 2.5% over the last 24 hours.</p>

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        <img decoding="async" width="900" height="723" src="https://assets.finbold.com/uploads/2024/06/price-chart-of-btc-11.png" alt="" class="wp-image-180878" srcset="https://assets.finbold.com/uploads/2024/06/price-chart-of-btc-11.png 900w, https://assets.finbold.com/uploads/2024/06/price-chart-of-btc-11-300x241.png 300w, https://assets.finbold.com/uploads/2024/06/price-chart-of-btc-11-768x617.png 768w" sizes="(max-width: 900px) 100vw, 900px"/>
        <figcaption class="wp-element-caption"><em>BTC 7-day price chart. Source: Finbold</em></figcaption>
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    <p class="paragraph">With signals pointing to major past market upturns and technical <a target="_blank" href="https://finbold.com/guide/technical-analysis/#what-is-a-technical-indicator" rel="noreferrer noopener">indicators</a> driving a bullish sentiment, Bitcoin could experience a substantial price jump soon.</p>

    <p class="paragraph">The forthcoming months will be decisive in confirming if Bitcoin will realize these bullish projections and could dramatically alter the <a target="_blank" href="https://finbold.com/category/finance-news/" rel="noreferrer noopener">financial</a> landscape.</p>

    <p class="paragraph"><br/><strong><em>Disclaimer: </em></strong><em>The information provided here is not investment advice. Investing carries risks and your capital might be at risk.</em></p>
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