Bitcoin‘s price recently fell from $65,000 to below $62,000, causing unease in the market. Despite the decline, both analysts and investors remain hopeful about BTC’s future. One prominent figure in the field, Peter Brandt, who famously predicted the 2017 Bitcoin crash, believes the current price correction phase is drawing to a close.
Brandt’s Optimistic Viewpoint
Peter Brandt has expressed a bullish outlook on Bitcoin. In a recent blog post, he revealed that he has taken long positions, anticipating a breakout from the megaphone formation. This formation, identified through technical analysis, suggests a potential bullish continuation if BTC can surpass its diagonal resistance.
Technical Indicators
According to Brandt, Bitcoin is showing signs of upward momentum, particularly after emerging from an inverted head and shoulders pattern within the broader megaphone formation. He highlights that the weekly chart reflects a five-month expanding triangle, signaling a major breakout possibility. The daily chart also supports this with a completed inverted head and shoulders pattern, prompting Brandt to secure a 2.7 BTC position with risk management in place.
Key Takeaways for Investors
Investors can glean valuable insights from Brandt’s analysis:
- Consider long positions if BTC breaks out of the megaphone formation.
- Monitor the $72,000 resistance level for potential significant movements.
- Use protective stops to manage risks effectively.
Brandt’s analysis suggests that investors are not expecting a revisit to recent lows before accumulating more BTC, indicating potential upward movement. If BTC reaches the $72,000 resistance, it would signal a breakout from the megaphone pattern, a bullish indicator for the market.
Currently, Bitcoin is trading at $61,900, reflecting a daily drop of over 2%. The reason behind this decline is unclear, but some believe it may be tied to activities in the US market. Meanwhile, Ethereum also experienced a drop, trading at $2,593 after losing over 4%.