Veteran analyst and crypto trading legend Peter Brandt says that Bitcoin (BTC) is currently printing a structure that is seldom seen in any market.
Brandt, who gained a legendary reputation in the crypto space after nailing the collapse of BTC in 2017, says BTC is currently exhibiting inside a rare reversal pattern.
“This is called a megaphone or inverted symmetric triangle.”
A megaphone pattern, which is also known as a broadening formation, is a bullish technical structure typically seen after a sharp downward move. The asset traditionally breaks out after the third attempt to breach the diagonal resistance.
Looking at Brandt’s chart, it appears that Bitcoin has so far touched the diagonal twice, suggesting that BTC bulls need at least one more push for the king crypto to break out of the pattern.
Yesterday, Bitcoin rallied to its 2023 high of $26,507 on the back of a massive short squeeze that triggered $320 million in liquidations as traders who bet that BTC would fall scrambled to cover their positions.
Bitcoin has pulled back since and is trading for $24,796 at time of writing.
Brandt says that the correction suggests that the megaphone structure is in play.
“Not surprised 26,000 rejected advance.”
Following BTC’s latest retracement, fellow crypto analyst Michaël van de Poppe says BTC may find support at the $23,300 price level.
“Would have preferred a continued push towards $27,000 – $28,000 here for Bitcoin.
Not interested in buying this retest at $25,000.
Looking for deeper at $23,300 for bounce-play longs for Bitcoin.”
Featured Image: Shutterstock/Maquette.pro/FlashMovie