U.Today – Renowned trader Peter Brandt recently shared a chart that seems to provide crucial clues about possible future fluctuations in the price of Bitcoin. Because it offers valuable information about possible future prices, Brandt claims that this chart is essential to understanding Bitcoin’s binary price possibilities.
The chart first published by HTL-NL suggests that Bitcoin may have already topped out. This conclusion is reached by combining the relative strength index (RSI) with multiple technical indicators. The chart shows that the RSI continuously falls at every new high, indicating that buying momentum has been waning over time.
Bitcoin’s short-term growth potential may be limited as a result of the decreasing elasticity of this price action. This is supported by the chart, which shows the occurrence of a larger cycle that could see the Bitcoin price face significant resistance in the future.
According to this pattern, the cryptocurrency's bullish momentum has largely run out, leaving it more vulnerable to bearish pressure. Brandt has shared the chart to highlight the importance of “binary price possibilities.”
In his opinion, anyone trying to understand the possible binary outcomes of the Bitcoin price must understand these patterns. Basically, the chart suggests that Bitcoin has topped out and that the current cycle is exhausted. This dramatically increases the possibility of a reversal or an extended correction.
This outlook is also reflected in the current state of the Bitcoin market. The BTC price continues to fluctuate significantly in both directions as the market has not yet stabilized. A number of macroeconomic variables and regulatory changes are having a major impact on the market. Institutional investors remain key players today and fortunately, we are seeing a recovery of institutional inflows into the market, suggesting a possible continuation of an uptrend.
This article was originally published on U.Today
