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 <p class="paragraph">Legendary <a rel="noopener noreferrer nofollow" title="trader" href="https://thebittimes.com/tag/trader.html">trader</a> Peter Brandt believes Bitcoin (BTC) might be on the brink of a major breakout, drawing parallels to a significant <a rel="noopener noreferrer nofollow" title="stock" href="https://thebittimes.com/tag/stock.html">stock</a> <a rel="noopener noreferrer nofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a> surge in the mid-1980s.</p>
 <p class="paragraph">According to Brandt, BTC mirrors historical patterns that preceded a prolonged bull market, suggesting Bitcoin could follow a similar trajectory.</p>
 <p class="paragraph">In an X post (formerly Twitter), renowned trader Peter Brandt highlighted a striking similarity between a current Bitcoin chart and a pattern observed in the stock market during the mid-1980s, a period marked by a significant breakout.&nbsp;</p>
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    <p lang="en" dir="ltr">The argument for Bitcoin relates to the eventual destruction of fiat currency units (e.g., $USD)<br>This chart on right plots price of Bitcoin $BTC in relationship to total U.S. money stock (M1). This ratio remains below the Dec 2017 high. Interesting to note similarities in chart… pic.twitter.com/yQEAm3lMAX</p>— Peter Brandt (@PeterLBrandt) June 1, 2024
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 <p class="paragraph">Brandt focuses on the Bitcoin versus M1 money supply chart (BTC/WM1NS), which compares Bitcoin’s value against the total money supply in the US economy.&nbsp;</p>
 <p class="paragraph">According to Brandt, the BTC/WM1NS chart mirrors a pattern seen about four decades ago when the Dow Jones Industrial Average (DJIA) ignited a bull market, ending the stagflation era of the 1970s.</p>
 <h3 class="wp-block-heading" id="h-the-bullish-pattern-inverted-head-and-shoulders"><strong>The bullish pattern: Inverted head and shoulders</strong></h3>
 <p class="paragraph">Brandt highlights that the BTC/WM1NS chart exhibits an inverted head and shoulders pattern. This bullish formation indicates that buyers are no longer waiting for the price to revisit lows before entering the market.&nbsp;</p>
 <p class="paragraph">If the BTC/WM1NS chart witnesses a breakout, it would suggest that Bitcoin’s value is significantly outpacing the growing amount of US dollars.</p>
 <p class="paragraph">During the 1970s, the DJIA exhibited a pattern that Brandt believes is now mirrored in Bitcoin’s performance against the increasing supply of US dollars.</p>
 <p class="paragraph">The <a rel="noopener noreferrer nofollow" title="similar" href="https://thebittimes.com/tag/similar.html">similar</a>ities in chart structure to the DJIA during the 1970s are striking, and the continuation of this inverted head and shoulders pattern could signal an impending major breakout for Bitcoin.</p>
 <h2 class="wp-block-heading" id="h-techdev-s-supporting-analysis">TechDev’s supporting analysis</h2>
 <p class="paragraph">Adding to the bullish sentiment, a crypto strategist <em>TechDev,</em> believes that BTC is gearing up for a significant price explosion. TechDev notes that Bitcoin’s trading range on the five-day chart is at its tightest level in eight years.&nbsp;</p>
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    <p lang="en" dir="ltr">Historic move imminent.#Bitcoin's 5D bullish compression has reached its highest level in 8 years. pic.twitter.com/XektgbM0It</p>— TechDev (@TechDev_52) June 1, 2024
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 <p class="paragraph">The narrowing trading range suggests that an ensuing breakout will likely lead to steep and rapid rallies. He also highlights the BTC versus M1 money supply chart, recently witnessed a “textbook breakout.”</p>
 <p class="paragraph">This breakout, TechDev asserts, could ignite a parabolic surge, potentially ending this cycle with a blow-off top <a rel="noopener noreferrer nofollow" title="similar" href="https://thebittimes.com/tag/similar.html">similar</a> to those seen during the 2017, 2015, and 2013 bull <a rel="noopener noreferrer nofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a>s.</p>
 <h2 class="wp-block-heading" id="btc-price-analysis">BTC price analysis</h2>
 <p class="paragraph">At press time, Bitcoin (BTC) is trading at $70,784, showing a 24-hour increase of 2.5%.</p>
 <figure class="wp-block-image size-full"><img decoding="async" width="900" height="723" src="https://cdn.thebittimes.com/images/2024/06/05/1c01941caf6da4095ca2c59c3a824ed8.webp" alt="" class="wp-image-180878" srcset="https://cdn.thebittimes.com/images/2024/06/05/1c01941caf6da4095ca2c59c3a824ed8.webp 900w, https://cdn.thebittimes.com/images/2024/06/05/1c01941caf6da4095ca2c59c3a824ed8.webp 300w, https://cdn.thebittimes.com/images/2024/06/05/1c01941caf6da4095ca2c59c3a824ed8.webp 768w" sizes="(max-width: 900px) 100vw, 900px">
  <figcaption class="wp-element-caption"><em>BTC 7-day price chart. Source: Finbold</em> <br>
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 <p class="paragraph">With patterns reminiscent of historical market breakouts and technical indicators suggesting bullish momentum, Bitcoin could be on the verge of a significant surge.&nbsp;</p>
 <p class="paragraph">The next few months will be crucial in determining whether Bitcoin will meet these optimistic predictions and potentially reshape the financial landscape.</p>
 <p class="paragraph"><br><strong><em>Disclaimer: </em></strong><em>The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/bitcoin-could-trigger-a-stock-market-boom-similar-to-the-1980s-says-veteran-trader-tbt91364.html">https://thebittimes.com/bitcoin-could-trigger-a-stock-market-boom-similar-to-the-1980s-says-veteran-trader-tbt91364.html</a></p>

Bitcoin could trigger a stock market boom similar to the 1980s, says veteran trader

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