Peter Brandt, a widely followed cryptocurrency analyst well-known for accurately calling bitcoin’s 84% decline in 2018, has predicted there are “new highs ahead” for the flagship cryptocurrency.
Brandt’s prediction is based on technical analysis and fundamental drivers fueling the crypto’s rise. In a tweet sent to his over 435,000 followers, Brandt pointed to an inverse “head and shoulders” pattern on BTC’s price charts.
A head and shoulders pattern, it’s worth noting, is a chart formation that appears as a baseline with three peaks and predicts a bullish-to-bearish trend reversal. An inverse head and shoulders pattern predicts a bearish-to-bullish trend reversal.
Brandt isn’t just known for accurately calling BTC’s 2018 bear market, as the analyst has in the past made other correction predictions for the cryptocurrency’s price. In April 2019, the analyst set a $50,000 price target for the cryptocurrency “in the next two years.”
The price of bitcoin crossed the $50,000 mark earlier this year and hit a new all-time high above $58,000 before enduring a correction that saw it retest the $45,000 mark. It has since recovered, and is now trading at $51,000.
As Daily Hodl reports, Brandt also pointed to a fundamental catalyst helping bitcoin’s price move up: a devaluation of the purchasing power of the U.S. dollar. In a tweet, the analyst pointed to the fiat currency’s value dropping, and claimed it shows why bitcoin, real estates, equities and commodities “will continue to trend higher when expressed in USD fiat terms.”
Bitcoin bull Anthony Pompliano has expressed similar thoughts recently, saying that purchasing power is “drastically down” and that the stimulus package meant to support the U.S. economy over the effects of the COVID-19 pandemic “devalues their currency and savings.”
Featured image via Pixabay.