NOIDA (CoinChapter.com)—The Bitcoin price continued to hit new highs, with the token crossing above $82,000 to reach a new record high near $82,500. The bull run fueled speculation about how long this rally might continue.
Veteran trader Peter Brandt has added weight to the bullish outlook favoring Bitcoin, projecting a significant rally based on a unique chart pattern. Brandt’s prediction offers insight into Bitcoin’s future path, setting the stage for a closer look at the technical patterns driving this market.
Bulls seem to be in control of Bitcoin’s prices for now.
Brandt’s Chart Analysis and Gold Fractal Comparison
Brandt’s analysis highlights a complex inverted head and shoulders pattern on Bitcoin’s weekly chart, a technical setup often signaling a reversal and continuation of an uptrend. The pattern, which he terms a “complex continuation inverted H&S,” features two stunted shoulders flanking a deeper trough (the head), with the neckline acting as a resistance level.
Bitcoin appears to have broken above this neckline, reinforcing Brandt’s bullish outlook. Brandt emphasizes the fractal similarity between the price action in the gold market during the 2009-2010 period and the price action in Bitcoin.
In his analysis, gold formed a similar H&S structure before launching into a significant rally, effectively doubling in price. Brandt suggests a similar trajectory could unfold for Bitcoin, with the pattern potentially targeting a price as high as $300,000.
The ambitious target stems from the magnitude of the previous rallies post-halving and the confluence of a historical fractal pattern. Moreover, the analyst’s projection suggests that BTC prices could reach the projected price target during Trump’s upcoming regime.
If so, it could establish Donald Trump as the crypto sector’s most favored president.
Brandt’s theory is that, like gold, Bitcoin’s price action follows cyclical trends influenced by macroeconomic factors and investor sentiment.
Several technical indicators align with Brandt’s bullish perspective. The 8-week moving average (MA) shows strong support, with price action consistently above this trendline, indicating sustained buying pressure.
Furthermore, the ADX (Average Directional Index) sits at 19.28, a relatively low level that suggests Bitcoin’s upward momentum may still have room to strengthen. However, if profit-taking occurs or macroeconomic conditions shift, the market could experience sharp corrections.
BTC Price Continues Rallying
Peter Brandt’s predictions aside, the BTC USD pair does not seem to be in any mood to halt its rally, despite what technicals say. Bitcoin’s relative strength index has been overbought since Nov. 7, currently scoring 79.35 on the daily charts. An overbought RSI level has traditionally been a precursor of bearish reversal for a token.
Traders usually consider the occurrence a sell signal, which increases the selling pressure and thus causes a reversal. However, Bitcoin price continued its rally, painting new record highs on consecutive days, with the latest high reaching the $82,500 price mark.
Bitcoin remains in the price discovery zone. A rally from here would likely see BTC price rise to the 0.382 FIB retracement resistance level near $89,630. Breaking and consolidating above the immediate resistance level might help Bitcoin price rise to the resistance near $98,780.
However, a more likely scenario would be for Bitcoin prices to either pull back or start consolidating. A sell-off could see BTC price drop to the support near $74,200. Breaching the immediate support level might force Bitcoin price to test the 200-day EMA (green) support near $63,530 before recovering.
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