U.Today – Despite the relatively neutral sentiment in the cryptocurrency market, some renowned analysts believe that the first cryptocurrency is far from an uptrend and is currently showing bearish dynamics, with the potential to sink in the foreseeable future.
Veteran trader Peter Brandt recently shared his views on where he thinks the Bitcoin price is at the moment. He noted that contrary to what some may believe, the consolidation phase that Bitcoin is currently going through does not resemble a bullish flag pattern. Instead, Brandt observed a descending channel, indicating a potential downtrend.
Brandt’s analysis is based on the classic charting methods developed by Schabacker Edwards and Magee. He believed that pattern labeling should adhere to these accepted standards. According to Brandt, Bitcoin’s current pattern has persisted for too long to be taken seriously as a warning signal. Instead, the pattern looks more like a descending channel, which often signals a potential further decline.
The Bitcoin price movement seen in the provided chart, which shows a series of lower highs and lower lows, is consistent with a descending channel. This pattern gradually lowers the price due to resistance levels, which usually denotes a downward phase of the asset.
Should the downtrend continue, there could be further selling pressure on Bitcoin, which could push prices below their current levels. This view contradicts the hope some investors have about Bitcoin’s future, especially in light of the divergent signals from several technical indicators.
Overall, it is unclear whether or not the bullish rally will continue over the next week. One way or another, we need a fresh inflow of funds to see Bitcoin at $70,000 or higher.
This article was originally published on U.Today
