Peter L. Brandt is the founder and CEO of Factor LLC, a global trading company where he trades equity, foreign exchange, futures, fixed income and equity markets. He is an author of books and is always one of the active members who make predictions in the crypto industry.
He spoke about those who have recently pinned their hopes and formed their views on the market based on the trend line of the S&P500 index.
Brandt explains about Magic Line
According to Brandt, the “magic line” that investors have drawn on numerous charts has been making the rounds in the cryptocurrency and trading communities for the past several weeks. If this line were to break, it would indicate that the entire market, clearly including cryptocurrencies, since its correlation to most stocks has been extremely high since 2021, would be in the process of reversing.
Brandt, on the other hand, does not seem to share the same enthusiasm as other traders and believes that the advance of that line will do nothing, in contrast to other traders who are eager to see the firm breakout and acceleration of the rally.
The well-known analyst does not explain why, in his opinion, the trend line that virtually all traders and investors emphasize in their analysis is irrelevant or does not give the market momentum.
community reactions
Some people expressed agreement and commented that while it does not recommend this fractal develop, it does demonstrate the fact that occasionally the market can finish a dip and make a higher high without following the trend that has been around since the 1970s.
He received praise from one user for stating it. Some people have asked about it and urged him to clarify if it is due to fundamentals or macro.
Currently, the global market capitalization of cryptocurrencies is approximately $1.05 trillion. The market seems to have started to recover since the FTX fiasco.
/cloudfront-us-east-2.images.arcpublishing.com/reuters/6TBUX263HJPQRFISNGLNTYKPCY.jpg?w=75&resize=75,75&ssl=1 "U.S. seeks tighter bail for FTX founder Bankman-Fried to prevent tampering")
