Legendary trader Peter Brandt is warning that Bitcoin (BTC) is showing the makings of a bearish pattern.
Brandt tells his 696,600 Twitter followers that Bitcoin’s price action appears to indicate that a bearish pennant or flag pattern is developing, indicating another leg down is imminent.
[adinserter block="1"]“This is known as a pennant or flag and has short-term bearish implications unless negated by close above mid-point highs.”
Bearish pennant and flag patterns are both used in technical analysis to forecast abrupt moves down. They are slightly different patterns but have the same general result.
While predicting short-term bearishness, Brandt says Bitcoin will likely only make one more move to the downside before bouncing higher.
“Perhaps one more shake out break, then thrust higher. But hey, that’s just a guess, and guessing is the best we have to offer. If anyone is dogmatic about their brilliance, turn and run, protecting your wallet.”
According to Brandt, Bitcoin will eventually hit a new all-time high. He shares a chart depicting BTC’s multiyear cycles of hitting new highs, making a bear market low and then making a new high. Based on history, Bitcoin could be in for a 38-month cycle from its April 2021 peak, which would imply a new high somewhere around mid-2024.
Brandt has previously predicted that Bitcoin will ultimately outperform all other digital assets.
Bitcoin is trading for $26,308 at time of writing, down 3.6% during the last 24 hours.
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