Peter L. Brandt is the founder and CEO of Factor LLC, a global trading company where he trades proprietary capital, foreign exchange, futures, fixed income, and equities markets. He has authored books and is always one of the active members who make predictions in the crypto industry.
He spoke out about those who have recently placed their hopes and formed their market views based on the S&P500 index’s trend line.
Brandt Explains About Magic Line
According to Brandt, the “magic line” investors have drawn on numerous charts has been making the rounds in the cryptocurrency and trading communities for the past few weeks. If this line were to break, it would indicate that the entire market—clearly including cryptocurrencies, given that their correlation with the majority of stocks has been at an extremely high level since 2021—would be in the process of turning around.
Brandt, on the other hand, does not appear to share the same enthusiasm as other traders and believes that the breakthrough of that line will result in nothing, in contrast to other traders who are eager to witness the firm breakout and acceleration of the rally.
The well-known analyst does not elaborate on why, in his opinion, the trendline that virtually every trader and investor emphasizes in their analysis is irrelevant or does not give the market momentum.
Community Reacts
Some people have expressed agreement and remarked that while he is not recommending that this fractal plays out, it does demonstrate the fact that occasionally the market can finish a decline and reach a greater high without following the trend that has been in place since the 1970s.
He received praise from one user for stating it. Some individuals have inquired about it and urged him to clarify whether it is due to fundamentals or macro.
Currently, the global market cap of crypto is at about $1.05T. The market seems to have started recovering since the FTX fiasco.
Source: https://coinpedia.org/opinion/prominent-analyst-peter-brandt-debunks-magic-line-crypto-market-theory/