In a recent post, renowned trader Peter Brandt disclosed that he has a long position in spot Bitcoin, demonstrating his continued confidence in the cryptocurrency. The announcement was made in conjunction with a more comprehensive disclosure of his trading book, which includes long entries in Swiss francs and short positions in Russell 2000 Index futures, along with setting orders in commodities like coffee and cotton.
When it comes to Bitcoin, Brandt's position is in line with the current market and technical conditions. The most popular cryptocurrency recently surpassed $110,000, breaking through its all-time high (ATH). Retail investors might be excited by that figure, but for seasoned market players like Brandt, the ATH is a confirmation of momentum rather than merely a milestone.
It indicates that Bitcoin has not only bounced back from its last decline, but is also moving into uncharted territory with opportunities for further growth. The 26 EMA is providing strong support for Bitcoin's upward movement on the daily chart, and the volume is still high but not euphoric. Crucially, a trend reversal is confirmed over a longer period of time by the golden cross that was formed earlier this month when the 50-day EMA crossed above the 200-day EMA.
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The RSI is 76, which indicates some overextension but not enough to cause panic or reversal signals right away. Notwithstanding the rally, Brandt's remark that Bitcoin is not very extended indicates that he still sees more upside. In contrast, many traders who focus on retail have overbought concerns and may be alarmed by recent vertical moves.
Using macro tailwinds to his advantage while protecting his risk-balanced exposure against wider equity volatility, longing Bitcoin and the Swiss Franc, and shorting Russell, demonstrates a hedged strategy. The next obstacle for Bitcoin could be found between $112,000 and $115,000.
However, the market might gain more momentum as institutional sentiment rises and players like Brandt enter or double down. His action is a sign that even for an experienced trader with decades of experience, it makes sense to hold onto Bitcoin at this time.
