Veteran trader Peter Brandt (피터 브란트) has taken a long position in bitcoin, reversing his previous bearish view.

According to blockchain outlet U.Today on Aug. 20, Brandt cited the completion of a rare inverted head-and-shoulders pattern and a break above key resistance as the basis for turning to buying.

Until recently, Brandt left open the possibility of further declines in bitcoin. With the bearish move continuing and the right-shoulder area stretching out, he assessed the odds at about 60 to 40 that the pattern would resolve to the downside. He also diagnosed the overall trend at the time as downward.

But price action this week invalidated that scenario. Bitcoin rose into the $73,000 range after moving above resistance around $64,000, ending a box-range move that had lasted for weeks.

On the daily chart for the Chicago Mercantile Exchange (CME) bitcoin futures BTC-056 contract, the key neckline of the inverted head-and-shoulders reversal pattern broke higher. As this pattern, rare in the current market cycle, was completed, the price rise also accelerated. The contract rose to about $72,335 on the day, with a net daily gain of $2,585.

Brandt said the completion of the head-and-shoulders bottom changed the situation and revised his earlier judgment. He said he decided based on the flow rather than fighting the market, adding that he bought the breakout for better or worse.

Market reaction was mixed. Some market participants said Brandt's 60 to 40 probability model had limited practical effect in a single trade. Brandt countered that the core of risk management is the law of large numbers. He said a small probabilistic edge may appear meaningless in an individual trade, but as enough trades accumulate, the difference becomes the basis for keeping a system's expected return consistently positive.

Still, Brandt's shift in position does not mean his long-term outlook on bitcoin has completely changed. This buying is closer to a response based on technical conditions, including the break above $64,000 resistance and completion of the reversal pattern. If the price is pushed back below the breakout area, the basis for the buying call could weaken.

This shift to buying stands out as a trading judgment that puts chart signals and rule-based responses ahead of directional forecasts. A key point in this case is also that the completion of a rare reversal pattern and breakout trading led to an actual change in position.

“There was a reason to have expected a downside move in Bitcoin. An inverted H&S with a belabored right shoulder has a 60/40 chance to be resolved to the downside. And, the trend was down. But the completion of the H&S bottom changed that. I bought the breakout for better or worse pic.twitter.com/kTwU9SZHXh”