U.Today – Veteran trader Peter Brandt recently highlighted an intriguing price pattern emerging for (BTC). In a recent tweet, Brandt shared his perspective on the charts and indicated that Bitcoin’s price action was showing an inverted or expanding triangle pattern.
Brandt revealed his disciplined approach to trading, saying, “I don’t trade opinions. I trade setups using classic chart rules. I avoid trading when price is range-bound. My entry is based on completed patterns.”
“BTC is forming what we call an inverted or expanding triangle,” Brandt added.
A triangle is a chart pattern depicted by trend lines along a converging price range, indicating a break in the prevailing trend. Technical analysts categorize triangles as either continuation or reversal patterns of an existing trend.
Bitcoin (BTC), the largest cryptocurrency by market capitalization, experienced a sell-off during Sunday’s trading session. The selling continued, with Bitcoin hitting an intraday low of $57,663 on Monday.
At the time of writing, BTC price is down 2.09% in the past 24 hours to $59,450, from a high of $62,755 reached on Thursday.
Here is the warning part
While the expanding triangle pattern on the Bitcoin chart is noteworthy, Brandt issued a warning: “No breakout yet, so no trade.”
Even though the triangle pattern is a continuation pattern, traders are often told to look for breakouts before taking action to enter or exit a position.
This is because in technical analysis, a breakout from a pattern often indicates the start of a recent trend, but until the breakout occurs, the direction of the movement remains speculative.
The expanding triangle pattern suggests Bitcoin could be preparing for a potentially significant move, but without a confirmed breakout, the direction of that move remains unknown.
Peter Brandt’s warning emphasizes the importance of patience and not making hasty decisions, but waiting for confirmation before entering a trade.
