Trading Guru Peter Brandt Warns of Bearish Trend in Bitcoin Price Chart
In a recent post on Elon Musk’s social media platform X, renowned Trading Guru Peter Brandt has raised concerns about a worrisome pattern observed on the Bitcoin price chart. According to Brandt, Bitcoin seems to be on a downward trend, with a series of lower highs and lower lows continuing to manifest.
Implications of the Pattern
The consistent lower highs and lows highlighted by Brandt could signal a cooling of the recent bullish fervor in the Bitcoin market. Since reaching an all-time high above $73,000 in March, Bitcoin has struggled to reclaim this peak. Each attempt to rally towards the March high has been met with resistance around the $70,000 region, followed by a drop below the previous swing low. This pattern is typically indicative of a bearish trend.
While Brandt’s analysis provides valuable insights, some critics in the comment section of his post have questioned his previous bullishness on Bitcoin. However, other prominent figures in the crypto space, such as Willy Woo, have acknowledged the uncertainty of short-term market movements.
Factors Behind the Current Downtrend
Bitcoin is currently facing bearish pressure, with a 5.1% decline in the past 24 hours bringing its price below $63,000. This drop has wiped out over $50 billion from Bitcoin’s market cap in just one day. Despite the negative price action, trading volume has surged from $24 billion to $28 billion over the same period.
According to a CryptoQuant analyst, the recent plunge in Bitcoin can be attributed to movements in the age bands of BTC holdings. Large sums of Bitcoin that have been held for years started moving when the asset touched the $70,000 mark, leading to selling pressure. However, the analyst remains optimistic about a potential recovery in the near future, advising monitoring of age bands for liquidity and sales.
As Bitcoin continues to navigate through this challenging period, traders and investors are advised to stay vigilant and monitor market developments closely.
