U.Today – Legendary trader Peter Brandt has a sobering take on the recent Bitcoin (BTC) price rally. While he is impressed by the recent jump from $55,000 to $64,000, Brandt points out that the overall trend remains concerning. Despite the hype surrounding halvings and ETFs, the sequence of lower highs and lower lows is still in play.
Brandt, a well-known trading figure with almost 50 years of experience in the financial markets, shared his latest observations with the lend a hand of a price chart. The chart shows that from March to now, it has failed to make higher highs and has continued to set lower lows. This ongoing pattern suggests a downtrend, although the current rebound seems promising.
In a later social media exchange, the trader discussed the possibility of a head and shoulders pattern forming on the cryptocurrency’s monthly chart. This pattern, known to signal 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 the possibility of a bearish change in price direction on the horizon.
However, Brandt noted that while this pattern is a real factor, it has not yet been confirmed. He emphasized that the daily chart needs to show further evidence before people can draw any definitive conclusions about the validity of the pattern.
The cautious tone of veteran trading is a reminder to remain vigilant, even given BTC’s recent positive moves.
