Peter Brandt Highlights Potential Bitcoin Risks Amid Questionable Price Movements

Expert trader Peter Brandt cautions that Bitcoin (BTC) might lose its bullish trend after the recent crypto market setback.

Renowned trader Peter Brandt, known for accurately predicting Bitcoin's 2017 slump, has alerted his extensive Twitter following of 698,500 that Bitcoin's current trajectory may nullify its recent positive momentum. Brandt emphasizes the coin's approach to a pivotal price zone as a critical factor. Just last month, he highlighted a significant chart pattern—a breakout from an inverse head and shoulders reversal—which suggested Bitcoin had successfully navigated past the $25,000 resistance and was no longer on a downtrend.

Brandt further explains, 'Bitcoin's decline is once more challenging the neckline of the underlying inverse head and shoulders pattern. A close below $24,800—the lowest point reached during the last retest—could have a damaging impact on both the daily and weekly charts.

Source: Peter Brandt/X

Peter Brandt, a seasoned trader, warns that a second retest of Bitcoin's inverse head and shoulders neckline is a red flag for the bullish reversal pattern. 'The fact that we're revisiting this point is quite concerning,' states Brandt. He goes on to say that Bitcoin has broken a diagonal support line that has maintained its upward trajectory since the year's commencement. According to Brandt, unless BTC regains this trendline, a bearish outlook is likely.

Brandt elaborates on his trading strategy, 'As a swing trader, I would acknowledge the broken trendline. My positions would be either in a short or flat state. A bullish scenario would only be considered if a bear trap is effectively triggered.

Source: Peter Brandt/X

Currently, Bitcoin trades at $25,937, staying above the inverse head and shoulders neckline but notably beneath the diagonal support.

Aug 20, 2023

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