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Bitcoin Mega Chart Pattern Rejected by Veteran Trader Peter Brandt

Published 09/11/2023, 11:00 AM
© Reuters.  Bitcoin Mega Chart Pattern Rejected by Veteran Trader Peter Brandt
BTC/USD
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U.Today - Veteran trader has dismissed the appearance of a mega chart pattern on the Bitcoin chart. Brandt responded to a analysis posted by an X user, "Northstar," who speculated that Bitcoin might have spent the last 12 years forming a huge bearish rising wedge.

Brandt replied that the observation made does not meet the criteria of a rising wedge, as there must be an overlap between intermediate highs and lows.

Thepointed out that the rising wedge, in this context, was simply part of the Bitcoin price trend and not a singular pattern.

The rising wedge has oftentimes appeared on Bitcoin's price charts, so going by Brandt's comments, it was all part of a trend and not a mega pattern.

In bear markets, a rising wedge is a common technical indication. When the price advances upward, the pivot highs and lows converge into a single point known as the apex, and this pattern appears on the chart.

When coupled with decreased volume, a rising wedge may indicate that the bear market will continue. While the wedge pattern is quite popular among traders, investors should be aware that there are many false patterns, or patterns in disguise, that may appear as rising wedges.

Bitcoin hits new highs in new daily addresses

On-chain analytics firm reported a significant development that occurred on the Bitcoin network over the weekend: Bitcoin recorded its highest number of new daily addresses since 2017, the second highest since its inception.

As reported by Ali, a cryptocurrency analyst, he observed over the weekend that new daily BTC addresses have hit a yearly high of 527,000.

Despite weak trading activity, this could suggest rising interest in BTC. Likewise, the increase in participation could be interpreted as a measure of the network's sustained interest and trust.

This article was originally published on U.Today

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