U.Today – Legendary trader Peter Brandt has a sobering take on the recent Bitcoin (BTC) price rally. While he is impressed by the recent jump from $55,000 to $64,000, Brandt notes that the overall trend remains concerning. Despite the hype around the halving and ETFs, the sequence of lower highs and lower lows is still in play.
Brandt, a well-known figure in the trading world with almost 50 years of experience in financial markets, shared his latest findings via a price chart. The chart shows that from March until now, it has failed to make higher highs and continues to set lower lows. This ongoing pattern suggests a bearish trend, although the current bounce looks promising.
In the subsequent exchange on social media, the trader discussed the possibility of a head and shoulders pattern forming on the cryptocurrency's monthly chart. This pattern, known for signaling potential market reversals, consists of three peaks: a higher peak (the head) between two lower peaks (the shoulders).
If Bitcoin were to develop this pattern, it could indicate that a bearish change in price direction could be on the horizon.
However, Brandt noted that while this pattern is a real consideration, it has not yet been confirmed. He stressed that the daily chart needs to show more evidence before people draw definitive conclusions about the validity of the pattern.
The veteran trader's cautious tone is a reminder to remain vigilant, even with BTC's recent positive move.
This article was originally published on U.Today
