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Commodity trader Peter Brandt has weighed in on the Bitcoin/gold ratio, predicting that it could surge to 123.
Such a target implies that the Bitcoin price could possibly surge to around $300,000.
When I look at chart of Bitcoin/Gold ratio, here is how I view it: $GC_G $BTC $BTCXAU
— Peter Brandt (@PeterLBrandt) September 21, 2024
1. Continuation inverted H&S pattern, neckline at 32.5 to 1
2. Left shoulder low at 14.2 to 1
3. Right shoulder forming flag
4. Could decline into high teens to 1
5. Target 123 to 1 pic.twitter.com/VKvsDqwkuU
Brandt's apparent bullishness is based on the inverse head-and-shoulders (iH&S) pattern that is in the process of being formed on the weekly BTCUSD/GC1 chart.
As the term implies, the iH&S pattern is characterized by the head and two shoulders. The pattern is frequently used by chartists for spotting bullish reversals.
Brandt has noted that the left shoulder of the pattern currently stands at 14.2, while the right shoulder is in the process of forming a bullish flag.
However, it is worth noting that the iH&S pattern has to be typically combined with other technical indicators in order to get a bigger picture.
"Last laugh"
Peter Schiff, one of the most prolific Bitcoin critics, has been routinely gloating over the fact that the cryptocurrency is struggling to regain its bullish momentum while gold keeps recording new lifetime highs.
However, Brandt recently took aim at Schiff in a social media post, arguing that "the last laugh" will not belong to him.
This implies that Brandt expects Bitcoin to substantially outperform gold in the near future.
Earlier, the chartist predicted that the leading cryptocurrency could end up reaching $150,000 at the peak of the current cycle. The chartist expects Bitcoin to reach this much-coveted price level next year.
At press time, Bitcoin is changing hands at $62,741 after dipping by 0.5%.