Cryptocurrency and Peter Brandt, one of the well-known names in financial markets, commented on a “trend line” that has been circulating recently.
Peter Brandt warned those who trade using the trend line in the S&P 500 index of some of the cryptocurrency participants. The “magic line” that traders have highlighted on numerous charts has been circulating in the cryptocurrency and stock market communities for the past few weeks. This is due to the belief that a reversal will begin in other markets that are highly correlated with the break of the line.
Sorry trendline fanatics
It will mean absolutely nothing to me as a trade if this trendline is violated $SPY pic.twitter.com/V5LFYKdGHxNEWS CONTINUES BELOW
— Peter Brandt (@PeterLBrandt) January 26, 2023
However, Brandt disagrees with the other trader and believes that breaking this line will lead to nothing, unlike others who are eager to see the rally break solidly and accelerate.
The veteran trader did not provide any additional information as to why he thought the trendline that almost every trader and investor highlighted in his analysis was of no importance or did not add any momentum to the market.
Some participants assume that a break of this line will not necessarily initiate a long-term bullish rally, as the technical level does not look that impressive on longer timeframes, whether monthly or even weekly.
However, it can be seen that this line has been broken recently and has not triggered any activity in the markets. While Bitcoin and altcoins showed the same momentum, some assets lost value.
You can follow the current price action here.