News
Veteran trader Peter Brandt makes the sensational Fiat Bitcoin argument
Tomiwabold Olajide
Peter Brandt presents compelling arguments for Bitcoin versus fiat currency using historical parallels and technical models
Continue reading U.TODAY
Google News
Peter Brandt, a veteran trader known for his keen market insights, recently made a compelling argument in favor of Bitcoin, 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 in the global financial landscape.
According to Brandt, the argument for Bitcoin concerns the eventual destruction of fiat monetary units. To illustrate his point, Brandt shared a chart comparing Bitcoin (BTC) to the total US money stock (M1), a ratio he said remains below its December 2017 high.
Come alongside, Brandt highlights striking similarities between this chart and the Dow Jones Industrial Average (DJIA) during the Great Stagflation of the 1970s.
The 1970s were a period of high inflation and stagnant economic growth, a phenomenon known as stagflation. During this period the DJIA exhibited a particular pattern that Brandt says is now reflected in Bitcoin’s performance relative to the growing supply of US dollars. This pattern, known as an inverted head and shoulders, is often interpreted as a bullish signal, suggesting further upward movement in the value of Bitcoin.
The inverted head and shoulders pattern is a technical analysis chart formation that indicates a bearish trend reversal. It consists of three parts: a single crochet (head) flanked by two higher single crochets (shoulders). When this pattern forms, it signals the potential for a significant upward price movement once the price breaks above the resistance level formed by the shoulders.
In the context of Bitcointhis pattern suggests an imminent shift in momentum that could push the cryptocurrency to new heights, just as the Dow eventually emerged from the period of stagflation.
Brandt’s view is not without skepticism, as he says some market observers may disagree with the pattern’s definition as “inverted head and shoulders continuation.” Therefore, he presents an argument using many references to support his claims.
The identified inverted head and shoulders pattern, if validated, could be the technical confirmation of a much larger fundamental shift, which could redefine the very concept of money in the years to come.
At the time of writing, BTC was trading at $67,722.
About the author
Tomiwabold Olajide
Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analyzes and trading predictions on estimated market trends. Tomiwabold graduated from the University of Lagos.