U.Today – Veteran trader Peter Brandt has recently highlighted an intriguing price pattern that is emerging for (BTC). In a recent tweet, Brandt shared his perspective on the charts and noted that Bitcoin’s price action was showing an inverted or expanding triangle pattern.
Brandt revealed his disciplined approach to trading, saying: “I don't trade opinions. I trade setups through classical charting principles. I avoid trading when price is range bound. I enter completed patterns.”
“BTC is showing what is known as an inverted or expanding triangle,” Brandt added.
A triangle is a chart pattern represented by trend lines along a converging price range, indicating a pause in the prevailing trend. Technical analysts classify triangles as continuation patterns of an existing trend or a reversal.
Bitcoin (BTC), the largest cryptocurrency by market cap, experienced a sell-off during the trading session on Sunday. The selling continued and Bitcoin touched an intraday low of $57,663 on Monday.
At the time of writing, BTC was down 2.09% over the past 24 hours to $59,450, down from Thursday’s high of $62,755.
Here's the warning part.
While the expanding triangle pattern on the Bitcoin chart is noteworthy, Brandt issued a warning: “There is no breakout yet, so there is no trade.”
Even though the triangle pattern is a continuation pattern, traders are often urged to look for breakouts before making a move to enter or exit a position.
This is because, in technical analysis, a breakout of a pattern often means the beginning of a new trend, but until that breakout occurs, the direction of the movement remains speculative.
The expanding triangle pattern suggests that Bitcoin could be gearing up for a potentially significant move, but without a confirmed breakout, the direction of that move remains unknown.
Peter Brandt's warning highlights the importance of being patient and not making hasty decisions, but rather waiting for confirmation before entering a trade.
This article was originally published on U.Today
