U.Today: Peter Brandt, a veteran trader widely known for his technical analysis, recently posted an important update on the current price action.
Noting that BTC remains trapped in a series of lower highs and lower lows, Brandt noted that only a close above the July highs would officially break this pattern and complete the six-month expanding triangle that has formed. Until that point is reached, he believes the pattern will continue.
It is worth noting that at the time of Brandt's assessment, Bitcoin (BTC) was valued at $63,695. Just 24 hours later, the price had skyrocketed to $66,200, raising doubts for some observers. Some wondered if this price change would change the way traders think about the leading cryptocurrency.
Still, Brandt said Bitcoin still needs to break through the July high of $70,000, which would require another 5.5% gain, to invalidate the series of lower highs and lower lows. This despite the fact that BTC has already gained 12% since the beginning of September.
The Bitcoin Megaphone
In his latest technical analysis, Brandt highlights the importance of the expanding triangle pattern, or megaphone, which continues to influence the Bitcoin price chart. This megaphone formation is a pattern that typically indicates increasing volatility and broader price swings.
It has been perfectly in line with BTC's behavior in recent months, keeping traders on their toes as the price action develops.
Meanwhile, the August low of $49,000 is a key support level that remains a focal point for any downside risks.
Whether Bitcoin will rise or retest its previous lows is still up for debate, but it is clear that the bulls have the upper hand for now as long as the price remains well above critical support.
This article was originally published on U.Today.
