His comment came after the price of dogecoin soared following Tesla CEO Elon Musk's acquisition of the social media platform Twitter.

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

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

"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."

Some people replied to his tweet, pointing out that it could be a false breakout and that a subsequent period of consolidation could determine where the price of dogecoin is actually headed. Many believe that the recent DOGE pump is "the Elon effect," stemming from the Tesla CEO buying Twitter.