Long-time trader Peter Brandt is issuing a warning on Bitcoin (BTC) amid the formation of a bearish chart pattern on the flagship crypto asset’s weekly time frame.
Brandt tells his 737,000 followers on the social media platform X that Bitcoin is forming an inverted expanding triangle pattern on the weekly chart.
In technical analysis, an expanding triangle pattern, which is also known as the megaphone, can either be bullish or bearish – bullish when the pattern breaks out above the upper boundary and bearish when the pattern breaks down below the lower boundary.
Brandt says that if Bitcoin tests the lower boundary of the inverted expanding triangle pattern, its price will decrease by around 19% from its current level.
“A test of the lower boundary would be to $46,000 or so. A massive thrust into new all-time highs is required to get this bull market back on track.
Selling is stronger than buying in this [inverted expanding triangle] pattern.”
While Brandt is leaning bearish on Bitcoin, cryptocurrency analyst Ali Martinez holds the opposite view. Martinez tells his 70,300 followers on the social media platform X that based on history, Bitcoin’s price performance in October is usually the opposite of what happens in September.
“Even though September has historically been a rough month for Bitcoin, keep in mind that October is just around the corner. Often called “Uptober,” it’s known as one of the best months for BTC.”
Bitcoin is trading at $56,710 at time of writing.
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