Veteran trader Peter Brandt says the dogecoin bear market that began in May last year has ended. His comment came after the price of dogecoin soared following Tesla CEO Elon Musk’s acquisition of the social media platform Twitter.
Peter Brandt on Dogecoin Outlook
Veteran trader Peter Brandt shared his analysis of dogecoin (DOGE) Sunday. Brandt has been a futures and FX career trader since 1975. He is a chartist and the author of the Factor Report. He trades a variety of markets, including Dow futures, bonds, corn, crude oil, European wheat, Osaka Dow, U.S. dollar, and sugar.
Tweeting a chart of DOGE, Brandt wrote: “This is called a bear channel, the upside violation of which has ended the bear market that began at the May 2021 high.”
However, Brandt followed up with another tweet, warning traders not to fall for the common mistake of assuming that the end of a bear market automatically means a bull market has begun. He cautioned:
A common mistake made by novice and wanna-be traders is assuming that an end to a bear phase of a market is automatically a signal that a bull market has begun. This assumption is most often wrong.
Some people replied to his tweet, pointing out that it could be a false breakout and that a subsequent period of consolidation could determine where the price of dogecoin is actually headed. Many believe that the recent DOGE pump is “the Elon effect,” stemming from the Tesla CEO buying Twitter.
The price of dogecoin began soaring after Musk acquired Twitter. The billionaire, who is sometimes known in the dogecoin community as the Dogefather, completed the acquisition of the social media giant Thursday. In the past, his support for the meme cryptocurrency often boosted the price of DOGE.
Musk previously revealed that he owns three cryptocurrencies: bitcoin, ether, and dogecoin. The Tesla CEO confirmed in June that he will keep buying and supporting DOGE, stating on several occasions that the meme coin has potential as a currency.
His electric car company, Tesla, accepts the meme cryptocurrency for some merchandise and his Boring Company accepts DOGE payments for some rides. He also said that Spacex will soon accept dogecoin for merchandise. Many dogecoin supporters expect Musk to utilize the meme crypto as he endeavors to improve Twitter. In May, he said that Mark Cuban’s idea about using DOGE to solve Twitter’s spam problems is “not a bad idea.”
At the time of writing, DOGE is trading at $0.116263, down nearly 9% over the past 24 hours but up 95% over the past seven days.
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Kevin Helms
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