Legendary commodity trader Peter Brandt says that Bitcoin (BTC) is forming a classic bearish pattern, suggesting lower prices for the leading crypto asset by market cap.
In a tweet to his 672,000 Twitter followers, Brandt says that Bitcoin is forming a rising wedge, a price action pattern that traditionally suggests an eventual drop to the downside after completion.
However, the trader says there are two caveats that come with BTC’s bearish price action.
“Pattern formation in progress: Rising wedge on BTC.
-Most formation patterns morph into something else.
-Even if it is an ascending wedge, it must first be completed.
Brandt also says that judging by the number of people who agree with his opinion, the pattern might be too obvious and bound to fail.
“Too many people agree with me. That makes me think that the morphology may be the most likely, but we’ll see.”
Crypto analyst Kaleo also suggested that there could be a pullback for Bitcoin, with a price target of around $21,000 before it rises another leg to around $28,000.
Just take off the band-aid, please.
I am ready to see my timeline go into mass hysteria again and start asking for less than $10K because they have a lot of PTSD from previous dips, only to be bullish again a few days later when we get back to current levels.
The pseudonymous analyst says that the stock market seeing more red days recently could be the catalyst that pushes BTC to a local low.
“Stonks have continued lower since yesterday’s pre-market close, and Bitcoin looks weaker, but has yet to make a sharp move.
It shouldn’t be much longer before the weakness gives way and we get our lowest bids.”
At the time of writing, BTC is trading at $23,874.
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