U.Today – Despite the relatively neutral stance on the cryptocurrency market, some reputable analysts believe that the first cryptocurrency is far from a bullish trend and is currently showing downward momentum, potentially heading lower in the foreseeable future.
Veteran trader Peter Brandt recently shared his views on where he believes the price is currently. He noted that contrary to what some may think, the consolidation phase that Bitcoin is currently going through does not resemble a bullish flag pattern. Alternatively, Brandt observed a descending channel, indicating a potential downtrend.
Brandt’s analysis is based on the classic charting methods developed by Schabacker Edwards and Magee. He believed that labeling patterns should follow these accepted standards. According to Brandt, Bitcoin’s current pattern has been in place far too long to be taken seriously as a warning. Instead, the pattern is more like a descending channel, which often indicates further potential decline.
The price movement of Bitcoin perceptible in the attached 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 usually indicates a bearish phase for the asset.
If the downtrend continues, selling pressure on Bitcoin could raise, which could cause prices to fall below current levels. This view contradicts the hope that some investors have for the future of Bitcoin, especially in the face of divergent signals from various technical indicators.
Overall, it is unclear whether the bullish trend will continue in the coming week. Either way, we need a fresh influx of funds to see Bitcoin at $70,000 or higher.
