Veteran trader Peter Brandt is warning that Bitcoin (BTC) is on the verge of losing all bullish momentum following the marketwide crypto correction.
Brandt, who gained legendary status after calling the crypto king’s meltdown in 2017, tells his 698,500 X followers that Bitcoin is now at risk of canceling out its recent uptrend as it approaches a crucial price area.
Last month, Brandt shared a chart showing how Bitcoin managed to break out from an inverse head and shoulders reversal pattern after breaching the price wall at around $25,000, which indicated that BTC is no longer in a downtrend.
Says Brandt,
“The decline in Bitcoin BTC is once again retesting the neckline on the underlying inverted head and shoulders [pattern]. A close below 24,800 (the low of the previous retest) would do damage to the daily and weekly graphs.”
According to Brandt, the second retest of the inverse head and shoulders neckline increases the odds that the bullish reversal pattern will fail.
“The fact that we are here again is highly suspect.”
The trader also says that Bitcoin has violated a diagonal support that has kept BTC in an uptrend since the start of the year. Brandt says that BTC will likely remain bearish unless it recovers the uptrend line.
“As a swing trader, I would respect the violation of the trendline. So, my positions would be either short or flat. Only if a bear trap is actually ‘sprung’ would I consider it a bullish development.”
At time of writing, Bitcoin is trading for $25,937, above the inverse head and shoulders neckline but well below the diagonal support.
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