Legendary futures trader Peter Brandt, head of Factor LLC, has opened a long position in Bitcoin, reversing his previous cautious outlook after a rare technical pattern completed on the CME Bitcoin futures chart.
Brandt had previously argued there was reason to expect a downside move, citing a prolonged right shoulder and a downtrend, and assigned roughly 60/40 odds to a bearish resolution. However, this week's price action invalidated that scenario. Bitcoin moved above resistance near $64,000, established support, and broke out of a multiweek consolidation.
On the daily CME Bitcoin futures chart, the BTC-056 contract broke above the neckline of an inverted head-and-shoulders bottom. During the session, the futures contract reached approximately $72,335, posting a net daily gain of $2,585.
"The completion of the H&S bottom changed that," Brandt said. "I bought the breakout for better or worse."
The reversal drew criticism from some market participants who questioned applying a 60/40 model to a single trade. Brandt responded by citing the law of large numbers, emphasizing that a small statistical edge may appear insignificant in one trade but creates positive expectancy over a large sample.
