Peter Brandt states that price is the best indicator of Bitcoin

Peter Brandt watches one thing when he trades: price. Forget the technical indicators clogging your chart. Brandt, a commodity trader and author of \"The Diary of a Professional Commodity Trader,\" has

By Aubrey Swanson·28 May 2020·2 min read

Peter Brandt states that price is the best indicator of Bitcoin

Key Points

Peter Brandt watches one thing when he trades: price.
Forget the technical indicators clogging your chart.
Brandt, a commodity trader and author of \"The Diary of a Professional Commodity Trader,\" has

Peter Brandt watches one thing when he trades: price. Forget the technical indicators clogging your chart. Brandt, a commodity trader and author of "The Diary of a Professional Commodity Trader," has said the only thing that matters is how much a given asset costs at any moment. Indicators are just derivatives of price, he wrote on Twitter. They tell you what price already told you.

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Brandt has been bullish on Bitcoin, calling for a run to $50,000. But his point cuts deeper than one trade. He saw a chart in early May that illustrated his frustration. Another trader had posted a bearish view on Bitcoin's post-halving performance, but crammed so many technical overlays onto it that the chart became almost unreadable. Brandt said no analyst would find value in such work.

The caveat: price doesn't always speak. Brandt acknowledged that expecting price to point the way on every trading day would be naive. The market stays quiet most of the time. Only once every year or two does price ring the bells and whistles. Over the past eight years, he figures fewer than a dozen trading sessions have generated those unmistakable signals. The rest is noise.

Bitcoin's price movements have demonstrated both sides of this principle. The token crashed more than 50% in March, then rallied more than 150% to reclaim prices above $10,000. The network halved in May. Bitcoin has since traded between a high of $10,100 and a low of $8,650. On May 27th, the price broke through the $9,000 resistance level. Within 24 hours, Bitcoin added roughly 3% to sit above $9,100.

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