U.Today, the largest cryptocurrency by market cap, recently hit $63,000, and veteran trader Peter Brandt has weighed in on the bullish price move.
Bitcoin is on track for a fourth straight day of gains, hitting a high of $63,293 in today’s trading session after bouncing off Friday’s low of $56,538.
According to Brandt, Bitcoin (BTC) may be developing a frequently repeating “Hump Slump Bump Dump Pump” chart pattern, a pattern Brandt has observed in the past.
“Bitcoin BTC may be developing an oft-repeated Hump Slump Bump Dump Pump chart pattern,” Brandt wrote on Twitter, suggesting that bitcoin’s price movement may be following a pattern.
This chart structure is characterized by a “Hump” or price augment, followed by a “Slump” or price decrease. The “Bump” phase shows a price augment, followed by a “Dump” which is another decrease. Finally, the “Pump” phase represents a huge upward move, often resulting in recent highs.
Bitcoin Bears in a Trap?
Brandt added that “the double top attempt on July 5 was a bear trap, confirmed by the close on July 13. The most likely scenario now is that the bears are trapped. A close below $56,000 negates that interpretation.”
According to Brandt, on July 5, Bitcoin attempted to form a double top, a bearish pattern that led to lows at $53,499. However, Brandt identified this as a bear trap, a false signal that misleads traders into believing the price will continue to fall. This view is not far-fetched, as Bitcoin had been falling for several days prior to that date.
However, a positive close on July 13 invalidated the double top. Brandt suggests that the most likely scenario now is that bears are trapped. This interpretation suggests that Bitcoin could continue its upward trajectory.
However, Brandt notes that a close below $56,000 would derail this bullish outlook, remaining a key level for traders to monitor. At the time of writing, BTC is up 5.05% in the past 24 hours to $62,642.
