Trader Peter Brandt says the dogecoin bear market is over

Trader Peter Brandt says the dogecoin bear market that began in May of last year is over. His comment came after the price of dogecoin surged following the acquisition by Tesla CEO Elon Musk.

Peter Brandt on the prospects of dogecoin

Trader Peter Brandt shared his analysis of dogecoin (DOGE) on Sunday. Brandt has been a futures and FX trader since 1975. He is a chartist and 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 DOGE chart, Brandt wrote: “This is called a bearish channel, the violation of which to the upside ended the bear market that began at the May 2021 high.“

This is called a bear channel, the upside violation of which has ended the bear market that began at the May 2021 high $DOGE pic.twitter.com/pZT5yxMje6

– Peter Brandt (@PeterLBrandt) October 30, 2022

However, Brandt followed up with another tweet, warning traders not to fall into the common mistake of assuming that the end of a bear market automatically means that a bull market has begun. He warned:

A common mistake made by novice and would-be traders is to assume that the end of a bear market phase is automatically a signal that a bull market has begun. This assumption is most often wrong.

Some people responded to his tweet, pointing out that this could be a false breakout and that a subsequent period of consolidation could determine where the dogecoin price is actually headed. Many believe that the recent dogecoin pump is “Elon effect“, stemming from the Tesla CEO’s purchase of Twitter.

The price of dogecoin has begun to soar after Musk’s acquisition of Twitter. The billionaire, who is sometimes referred to by the dogecoin community as the Dogefather, completed the acquisition of the social media giant on Thursday. In the past, his support for the cryptocurrency meme has often driven up the price of dogecoin.

Musk previously revealed that he owns three crypto-currencies: bitcoin, ether and dogecoin. The Tesla CEO confirmed in June that he would continue to buy and support DOGE, repeatedly stating that the meme currency had potential as a currency.

His electric car company, Tesla, accepts the meme crypto-currency for some goods and his Boring Company accepts payments in DOGE for some rides. He has also stated that Spacex will soon accept dogecoin for its goods. Many dogecoin supporters expect Musk to use the meme crypto-currency as he works to improve Twitter. In May, he said Mark Cuban’s idea of using DOGE to solve Twitter’s spam problems was “not a bad idea.”

At the time of this writing, DOGE is trading at $0.116263, down nearly 9 percent over the past 24 hours but up 95 percent over the past seven days.