Peter Brandt, an experienced market analyst, has issued a report regarding the Bitcoin-to-Gold (BTC/GLD) ratio, indicating a potentially bullish outlook for Bitcoin’s future. He anticipates that Bitcoin could soar to an impressive 123 ounces of gold per BTC. Such a surge would set a new record for Bitcoin against gold, eclipsing the previous peak of 37.2 ounces reached in November 2021.
Brandt has pinpointed an inverted head and shoulders (H&S) pattern as the primary configuration in the BTC/GLD ratio. The neckline of this pattern is situated near the 32.5 ounces mark. This setup is seen as a bullish indicator, and a price breakout above the neckline typically signals a continuation of the upward trajectory.
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In Brandt’s analysis, the price has not yet decisively broken through this neckline. The left shoulder of the H&S pattern reached a low of 14.2 in the ratio. As Bitcoin has rebounded, it has formed a flag pattern, which is representative of the right shoulder.
BTCGLD 1W Chart | Peter Brandt
While Brandt acknowledges that this flag formation might lead to a short-term retreat, potentially bringing the ratio back into the high teens, he believes this pullback could serve as the final major correction before the next significant rally.
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Brandt’s long-term aspiration is set at 123 ounces. If gold were to reach its all-time high of $2,634, this ratio would imply a Bitcoin value of approximately $323,000. Should gold continue its upward path and surpass its $2,634 peak, the 123-ounce target would result in an even higher valuation for Bitcoin.
Bitcoin’s Cup and Handle Against the Dollar
In parallel with this optimistic view of Bitcoin’s performance against gold, the leading cryptocurrency is also forming encouraging patterns against the U.S. dollar. A similar cup and handle formation has emerged on the weekly Bitcoin-to-USD chart. The cup shape developed when Bitcoin fell from its 2021 high of $69,000 to a low of $15,632 in 2022, before rebounding to reach a recent peak of $73,794 in March 2024.
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BTCUSD 1W Chart
Currently, the handle of this formation is taking shape amid Bitcoin’s ongoing retracement from the recent peak. Such price pullbacks are common in cup-and-handle patterns and often precede breakouts to new highs.
Additionally, the Directional Moving Index (DMI) reinforces the bullish sentiment. The +DI (positive directional index) is on the rise, currently at 19.3, while the -DI (negative directional index) is decreasing, indicating diminishing selling pressure. The ADX, which gauges trend strength, is currently at 23.72 and is declining. This drop in the ADX suggests that the existing consolidation phase may soon transition into a robust new trend. If the +DI continues to ascend and the -DI continues to decline, Bitcoin could experience another upward movement. Presently, BTC is trading at $63,213.
**Disclaimer:** This content is for informational purposes only and should not be interpreted as financial advice. The opinions expressed in this article may reflect the author’s personal views and do not necessarily align with those of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses.
