Some traders believed that a new Bitcoin rally has started already, and trading guru Peter Brandt is one of them. In a recent tweet, Peter gave three reasons why this might be the case.

Has a new bull market began in #Bitcoin $BTC?

1. Market held support at lower boundary of multi-yr channel

2. Small H&S bottom on daily chart

3. Pending penetration of 6+ mo channel

If enough cryptocultists have been shaken out since Dec '17, then "yes"

If not, then "no" pic.twitter.com/vpKQeOKqLI — Peter Brandt (@PeterLBrandt) January 8, 2020

Firstly, Brandt believes that Bitcoin’s multi-year support remains intact. This means that, BTC could continue its parabolic upward move that was started in January 2015. In the past few months, the BTC price has touched this support on several occasions, though the bears are yet to break below it.

Secondly, Brandt also noted that Bitcoin was inching closer to reach the head-and-shoulders (H&S) bottom on the daily chart.

Lastly he noted that Bitcoin was trapped in a six-month falling channel after hitting its 2019 high of $13,700. However, the coin managed to print a daily close at $8,160, finally breaking out of the bear channel. Brandt believes this pending penetration gives more power to the bulls. The crypto community has been quiet after Bitcoin’s December 2017 rally was over. While it might seem like crypto is no more pleasant to the ordinary person, Brandt believes that enough shakeout of cryptocultists is actually a good thing

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