Seasoned trader Peter Brandt is looking at the state of Bitcoin after its strong rally above $40,000 to determine whether BTC has actually bottomed out.
Brandt tells his 619,800 Twitter followers that he’s looking at trader sentiment on Bitcoin to gauge what’s next for the leading cryptocurrency.
“Just as the laser eyes marked the April top and widespread talk of $100,000 marked the Nov. top, so bulls throwing in the towel and predicting $20,000 marked the January bottom.”
Last year, the laser-eye trend emerged, in which members of the crypto community used laser-eyes on their social media profile photos to cheer on Bitcoin’s rise to $100,000. According to Brandt, the movement marked Bitcoin’s top.
Brandt says that some of those who wore laser eyes are now predicting a move below $30,000. According to the veteran trader, the extreme shift in sentiment may indicate that BTC is close to bottoming out.
While Brandt considers the change in sentiment as a potential bottom signal, the trader says BTC has not yet carved a technical bottom that could set the stage for a trend reversal.
“It did NOT put in a conventional chart bottom construction buy signal as was the case in Nov 2015, Apr 2019, Oct 2020 or even Jul 2021, so time will tell if we get a chart set up recognizable in classical charting terms.
A completed recognizable pattern greatly increases odds a bottom is in. If [the] channel from Nov. 10 completes, odds of bottom increases, but a channel is [a] diagonal pattern, not ideal [as] BTC has [a] history of clear horizontal bottoms patterns, and a clear bottom has not yet formed.”
Brandt is referring to the descending channel on his chart that has kept Bitcoin in a downtrend since November. The trader highlights that while BTC has broken out of the channel, he says it may not be enough to call the bottom for Bitcoin.
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