Bitcoin price dropped from the $65,000 level it had risen to yesterday, falling below $62,000. Although the reason for this price drop is unknown, there is a sense of renewed market anxiety. Despite this, analysts and investors remain optimistic about BTC.
Brant’s Bitcoin Commentary
Peter Brandt, a seasoned investor who gained legendary status after informing the market about Bitcoin’s crash in 2017, seems to believe that BTC is in a position where the ongoing price correction of the past few months is nearing its end.
In a new blog post, Brandt states that he has taken long positions in Bitcoin, believing that BTC is close to breaking out of a megaphone formation.
Technical analysis suggests that if the price breaks its diagonal resistance, it could move in a bullish continuation pattern.
According to Brandt, Bitcoin appears to have started its upward movement after breaking out of an inverted head and shoulders pattern within the larger megaphone formation.
The dominant chart pattern on the weekly chart is a five-month expanding triangle or megaphone. A major breakout might be expected.
The daily chart shows a potentially completed inverted head and shoulders, part of the broader congestion. I took a 2.7 BTC position with a 40 basis point risk below Friday’s low and a protective stop. This is a position anticipating a larger breakout.
Looking at the inverted head and shoulders pattern, it suggests that investors do not expect the price to revisit recent lows before accumulating, indicating a potential upward movement. Based on the analyst’s shared chart, if BTC reaches the resistance at $72,000, it will break out of the existing large megaphone model.
Weekly and daily charts continue to form a megaphone or expanding triangle pattern in BTC. There is no clear indication of BTC’s next trend yet.
How Much is BTC?
At the time of writing, Bitcoin is trading at $61,900, having dropped over 2% during the day. Although the reason for the drop in BTC is unknown, it is believed that the process that began after the Wall Street opening was influenced by US investors.
In addition, the price of Ethereum has dropped over 4%, losing the $2,600 level once again, and is trading at $2,593.
