U.Today - Legendary trader Peter Brandt has a sobering take on Bitcoin’s (BTC) recent price bounce. While he is impressed by the recent jump from $55,000 to $64,000, Brandt points out that the overall trend remains troubling. Despite the hype around the halving and ETFs, the sequence of lower highs and lower lows is still in play.
Brandt, a well-known figure in trading with almost 50 years experience on financial markets, shared his latest insights through a price chart. The chart shows that from March until now, Bitcoin has not been able to reach higher highs and continues to set lower lows. This ongoing pattern suggests a downtrend trend, even though the current bounce seems promising.
In the subsequent social media exchange, the trader discussed the possibility of a head and shoulders pattern forming on the cryptocurrency's monthly chart. This pattern, known for signaling potential market reversals, consists of three peaks: a higher peak (the head) between two lower peaks (the shoulders).
If Bitcoin were to develop this pattern, it could indicate that a bearish shift in price direction might be on the horizon.
Nevertheless, Brandt noted that while this pattern is a real consideration, it has not been confirmed yet. He emphasized that the daily chart needs to show further evidence before people draw any definitive conclusions about the pattern’s validity.
The cautious tone of the veteran trade is a reminder to stay alert, even with the recent positive movement of BTC.