Peter Brandt states that Bitcoin could correct to levels it last witnessed in February, except the premier crypto asset surges quickly to a new all-time high.
Following in his recent trend, veteran crypto analyst Peter Brandt has again cautioned Bitcoin traders of the prevalent bearish momentum around the asset. This time, he warned of a forming price pattern that could see Bitcoin test the mid-$40,000 region.
Per a Thursday tweet, Brandt noted that Bitcoin was trading in what he called a megaphone pattern or an inverted expanding triangle. The seasoned trader warned that testing the lower boundaries of the trend could see Bitcoin hit $46,000.
This is called an inverted expanding triangle or a megaphone. A test of the lower boundary would be to 46,000 or so. A massive thrust into new ATHs is required to get this bull market back on track $BTC
Selling is stronger than buying in this pattern pic.twitter.com/ekDZUJXXgd— Peter Brandt (@PeterLBrandt) September 5, 2024
Brandt noted that this drop is likely to happen if bearish sentiments continue to dominate the Bitcoin market. He noted that there were more selling pressures than buying in the pattern, reflecting on the price trend in his megaphone pattern.
Another Bearish Outlook
The veteran trader’s price prediction was one of his many short-term bearish outlooks for Bitcoin. He has frequently warned traders of preceding bearish trends in the market as the largest crypto asset continues to move in the direction of the bears.
In an earlier post, Brandt expressed skepticism about the bull run’s validity, citing three factors supporting his claims. He pointed to a series of lower highs and lower lows in the Bitcoin chart to indicate that the market might be trending downwards.
The veteran trader further stated that Bitcoin had taken the longest time to reach a new high post-halving for the first time, an indication of underlying price weakness. Brandt asserted that bulls have not shown sufficient energy to upset the recent market trend.
A Way Back
Brandt stated that Bitcoin could bounce back if it moved to a new all-time high soon. That would invalidate the megaphone pattern and get the bull run back on track.
Bitcoin would have to surge almost 25% from its current price to breach its all-time high of $73,700. Such a price rebound is not new for Bitcoin, which has shown its ability to pump exponentially over time. The asset surged 43% from the start of the year to hit the new high in March.
Notably, Bitcoin has overperformed during the last quarter of the year. Hence, bulls are still optimistic that the asset will overturn its prevailing bearish momentum. At the time of writing, Bitcoin traded at $55,795, down over 25 in the past 24 hours.
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