Veteran trader Peter Brandt has identified a significant bearish signal in one prominent altcoin in the top ten rankings, particularly in relation to Bitcoin (BTC).

Brandt shared with his 732,800 followers on the social media platform X that the payments network XRP might be developing a head and shoulders (H&S) pattern against Bitcoin (XRP/BTC) on its weekly chart. In technical analysis, a head and shoulders pattern is generally viewed as a bearish reversal signal.

He warns of a potential decline for XRP/BTC if it drops below its multi-cycle support level, which is around 0.000008 BTC. “This chart pattern represents a complex multi-year head and shoulders formation. If this chart breaches the lower support line, we might witness the gradual disappearance of all X accounts associated with XRP,” Brandt stated.

Source: Peter Brandt/X

At the time of this report, XRP/BTC is trading at 0.00000916 BTC ($0.56).

Additionally, Brandt points out that Bitcoin is exhibiting consecutive patterns that indicate weakness for the leading cryptocurrency. “The series of lower highs and lower lows continues for BTC.”

Source: Peter Brandt/X

He also examines Bitcoin’s performance relative to gold, specifically the BTC/gold ratio. Brandt suggests that the current ratio of 26 could potentially drop to as low as 16, while still maintaining a long-term bullish outlook for Bitcoin against the precious metal. “The historical ‘store-of-value’ battle is significant. The BTC/gold chart exemplifies classical charting principles. Flexibility in interpretation is more crucial than rigid dogmatism. Currently at 26, BTC could (not will) see a considerable decrease against gold to around 16 without compromising its long-term bullish case.”

According to his long-term analysis, he believes Bitcoin could (not will) rise to over 150. “I advocate for owning both gold and Bitcoin. Being dogmatic about either is akin to chasing fool’s gold.”

Source: Peter Brandt/X

As of now, Bitcoin is trading at $61,970, having fallen more than 5% in the last 24 hours.

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