Bitcoin Poised for 35% Rally by August Says Veteran Trader

Veteran trader Peter Brandt has projected that Bitcoin (BTC) is poised for a significant rally in August, potentially reaching up to 35% higher than its current price. Brandt, with over four decades of trading experience, suggested that the cryptocurrency could trade at $125,000 or even $150,000 by August, based on his analysis posted on May 21.

Brandt's analysis focuses on Bitcoin's breakout from a bull flag pattern after retesting the $102,400 level. Additionally, the asset has confirmed an inverse head-and-shoulders breakout on the weekly chart, further strengthening the long-term bullish outlook. Previous consolidation patterns, such as a symmetrical triangle and double-top retest, have also resolved upward, indicating a steady trend of higher highs and higher lows.

Bitcoin's current rally is driven by strong positive momentum in the broader market, growing optimism around U.S. crypto regulation, and rising institutional interest. Despite declining U.S. stock markets, this latest uptrend has emerged, marking a rare divergence from Bitcoin’s typical correlation with equities. As of the latest update, Bitcoin was trading at $110,900, gaining nearly 4% in the last 24 hours and over 7% on the weekly timeframe.

Technical indicators also support Bitcoin’s potential surge to new highs. Notably, the digital currency is approaching its first golden cross since October, a technical event in which the 50-day moving average (MA) crosses above the 200-day MA. Historically, this pattern has signaled the beginning of powerful uptrends for Bitcoin. For instance, the last time a golden cross formed, BTC surged 46% in just two months.

At its current level, Bitcoin is trading well above both its 50-day and 200-day simple moving averages (SMAs), hinting at a strong upward momentum. However, the 14-day relative strength index (RSI) stands at 74.89, indicating overbought conditions and a possible short-term correction. Despite this, Brandt's analysis suggests that the current technical setup positions Bitcoin for a significant rally in the coming months.