Peter Brandt had previously identified the $58,000–$62,000 range as a potential pullback target for Bitcoin in January, although he also noted that this view could prove to be wrong. The latest price action, however, has significantly changed the picture.
Bitcoin surged last week following the market impact of a sharp rise in bond yields and a new initiative aimed at fiscal rebalancing. The asset approached $80,000 on Friday, gaining further momentum as short positions were forcibly closed.
Peter Brandt said he had viewed the probability of the prolonged right shoulder of an inverse head-and-shoulders pattern breaking to the downside at 60%, versus 40% for the alternative outcome. However, after the bottoming pattern was completed, he said he responded to the breakout by buying.
Bitcoin had reached $62,679 on August 17…