Following the recent surge in the value of Dogecoin by more than 87 percent, Veteran Trader, Peter Brandt has stated that the cryptocurrency asset has exited the bear market that started in May 2021.
Investors King earlier reported that Dogecoin has been on the rise since the news of Elon Musk’s acquisition of Twitter filtered in.
The meme coin first rose by 17 percent on Friday before adding another 70 percent on Saturday.
While narrating a breakout chart that he shared on Twitter, Peter Brandt noted that although Dogecoin is out of the woods, it is nonetheless not a sign of a bull market.
He cautioned beginner traders not to confuse the end of a bear phase as the beginning of a bull market.
Peter said, ” 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”.
However, some of his followers have expressed fear that the chart could be a breakout that will only deceive beginning traders and later go back into another phase of downward movement.
A Twitter user pointed out that a period of consolidation will help to determine the next movement of Dogecoin.
It would be recalled that the Dogecoin community has gone into a frenzy following its nearly 100 percent upward movement in just three days.
The recent movement of Dogecoin has been associated with the acquisition of Twitter which many cryptocurrency enthusiasts have interpreted as a good sign for Dogecoin and the entire cryptocurrency industry.
Similarly, Elon Musk has never hidden his love for cryptocurrency, particularly Dogecoin. He is often referred to as Doge-Father and his automobile company, Tesla accepts Dogecoin for the payment of some of its merchandise.
It is understood that the acquisition of Twitter by Elon Musk will create a friendlier social media industry for cryptocurrency.
Recently, Twitter has allowed users to attach their bitcoin wallet address to their profile while the social media giant is expected to adopt a more crypto-friendly policy to boost adoption.
