Veteran trader who called 50% gold crash buys Bitcoin

Veteran trader Peter Brandt said he bought Bitcoin (BTC) after a technical pattern he had previously viewed as bearish changed direction, reversing a cautious stance he held earlier this month.

On Aug. 20, Brandt said on X that Bitcoin had been forming an inverted head-and-shoulders pattern, a chart formation traders often interpret as a possible bottom. 

In simple terms, the pattern on his chart shows Bitcoin making three major lows, with the middle decline deeper than the two on either side. A breakout above the horizontal resistance line, known as the "neckline," can signal that sellers are losing control.

"The completion of the H&S bottom changed that. I bought the breakout for better or worse," Brandt wrote.

Brandt said the unfinished pattern previously had a "60/40 chance" of breaking lower because Bitcoin was still trending down and its final, or right, shoulder had taken unusually long to form.

The trade marks a shift from Aug. 9, when Brandt's chart pointed toward a possible Bitcoin decline to roughly $58,000. 

Brandt has traded commodities for more than five decades and is best known for calling major market reversals. In 1980, after gold surged to a record near $850 an ounce, he turned bearish before the metal entered a prolonged collapse that ultimately erased more than half its value from the peak.