Veteran trader Peter Brandt shared his perspective on Bitcoin, revealing a bearish outlook. He believes Bitcoin is far from an uptrend and may decline soon. Oh no.
Numbers doesn’t lie, they’re just telling many different stories
Brandt explained that Bitcoin’s consolidation phase doesn’t mean a bullish flag pattern as some analysts might think, instead, he sees a downward channel, aka a possible bearish trend.
This analysis is based on classical charting methods developed by Schabacker, Edwards, and Magee, looong time ago. Brandt thinks that pattern labeling should follow these traditional standards.
The pattern Brandt identified lasted too long to be considered a bullish flag, and he thinks it resembles a down channel, which often leads to more decline.
The chart shows Bitcoin’s price forming lower highs and lower lows, consistent with this downward channel.
This pattern signaling that resistance levels are lowering the price, also signaling a declining phase.
Up and down
If this trend continues, and Brandt thinks it will, Bitcoin could face growing selling pressure, potentially pushing its price below current levels.
This bearish view isn’t match with the hope some investors have for Bitcoin’s future price actions, especially given the mixed signals from various technical indicators.
The majority thinks the bottom is in, and the price will go only up from here.
The money never sleeps
It’s still uncertain whether a bullish rally will occur soon, or the bears win, and bulls will be f*cked.
For Bitcoin to reach $70,000 or higher, huge inflow of funds is necessary, and now, we don’t see that huge inflow.
Yes, ETFs are accumulating, but that’s maybe not enough. Without fresh investment, the chances of a strong upside movement are pretty slim.
Brandt’s analysis provides a rather outlier perspective for those optimistic about Bitcoin’s short-term success.
He isn’t someone who are considered as doomsayer, but his opinion now highlighting the potential risks in the market.
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