Veteran trader Peter Brandt says that the formation of a rising wedge on the Bitcoin/US dollar chart is cause for concern.
Brandt poses a question to his more than half a million Twitter followers on whether the rising wedge pattern will meet expectations or disappoint.
“Rising wedge – will it fulfill its expectations or fail to launch?”
A rising wedge pattern can sometimes signal that the price of an asset is poised to fall.
In a reply to a follower’s question as to whether he expects the price of Bitcoin to go up or down, Brandt says that he has a long position on the flagship cryptocurrency, but that he is concerned by the high level of bullish sentiment.
“Does not matter if I am bullish or bearish. I am long, substantially, but am concerned bullish sentiment remains much too high.”
Earlier this month, the experienced trader said that Bitcoin was still in a “long-term bull trend” while acknowledging that volatility would continue to remain a key feature of the flagship cryptocurrency.
Brandt’s concerns contrasts sharply with the views of PlanB, the anonymous analyst who popularized the stock-to-flow model in the valuation of Bitcoin.
PlanB tells his nearly 700,000 Twitter followers that according to the stock-to-flow model, which evaluates the value of Bitcoin by dividing the total supply by new supply, Bitcoin is currently in the second leg of a bull run.
“Both bitcoin S2F [stock to flow] (white line) and on-chain signal (color, not red yet) still indicating a 2nd leg of this bull market.”
PlanB further says that Bitcoin will hit six-figure levels.
“IMO [in my opinion] we are going up, first to [$100 thousand], then [$288 thousand]”
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