Savvy trader Peter Brandt believes traders are giving too much attention to resistance that is not significant
One of the most popular traders in the cryptocurrency industry, who gained popularity in the space thanks to his enormous experience and ability to accurately analyze the state of markets, spoke out about those who have been recently putting their hopes and forming their view on the market based on the trend line on the S&P500 index.
The “magic line” investors highlighted on numerous charts has been going around the cryptocurrency and trading communities for the last few weeks as the breakout of the line would suggest the reversal of the whole market, obviously including cryptocurrencies since their correlation with most stocks has been at an extremely high level since 2021.
Sorry trendline fanatics
It will mean absolutely nothing to me as a trade if this trendline is violated $SPY pic.twitter.com/V5LFYKdGHx
— Peter Brandt (@PeterLBrandt) January 26, 2023
However, Brandt does not seem to share the same enthusiasm with other traders and believes that the breakout of that line will lead to nothing, in contrast to other traders who cannot wait to see the solid breakout and acceleration of the rally.
Unfortunately, the prominent analyst does not provide any additional information on why he thinks the trendline almost every trader and investor highlights in his or her analysis has no relevance or does not provide any momentum to the market.
Some users assume that the breakout of that line does not necessarily launch a long-term bullish rally since the technical level does not look as impressive on longer time frames monthly, or even weekly.
The breakout of the line that happened recently, indeed, did not bring any volatility back to the market, even after the index gained a foothold above it. Bitcoin and altcoins have been showing the same momentum, while some assets even retraced from their local highs, losing some of the value they gained previously.
