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Peter Brandt Reveals His Bearish View on Bitcoin (BTC) by U.Today
U.Today – Despite the relatively neutral sentiment in the cryptocurrency market, some renowned analysts believe that the first cryptocurrency is far from a bullish trend and is currently showing bearish dynamics, with the potential risk of a crash in the near future.
Experienced trader Peter Brandt recently shared his thoughts on where he believes the price is right now. He noted that, contrary to what some might believe, the consolidation phase Bitcoin is currently going through does not resemble a bullish flag pattern. Instead, Brandt noted a descending channel, which indicates a potential downtrend.
Brandt’s analysis is based on classical charting methods developed by Schabacker Edwards and Magee. He believed that pattern labeling should adhere to these accepted standards. According to Brandt, Bitcoin’s current pattern has lasted too long to be taken seriously as a warning signal. Instead, the pattern is more like a descending channel, which often indicates further downside potential.
The price movement of Bitcoin as seen in the provided chart, which shows a series of lower highs and lower lows, is consistent with a descending channel. This pattern gradually lowers the price due to resistance levels, which typically denote a declining phase of the asset.
If the downtrend continues, there could be more selling pressure on Bitcoin, which could push prices below their current levels. This view contradicts the hopes that some investors have for the future of Bitcoin, especially in view of the divergent signals from various technical indicators.
Overall, it is unclear whether the bullish rally will continue into the coming week or not. Either way, we need a fresh influx of funds to see Bitcoin at $70,000 or above.