Experienced crypto analyst, Peter Brandt has discovered an inverted or expanding triangle pattern Bitcoin (BTC). Using classical diagramming principles, Brandt analyzes technical pattern formation and highlights its potential impact Bitcoin’s price trajectory.
What Bitcoin’s Inverse Triangle Pattern Means
On August 12, Brandt contacted X (formerly Twitter). shed light on a recent pattern formation in Bitcoin’s price chart. Sharing a price chart illustrating Bitcoin’s price movements from May 2023 to November 2024, the analyst identified a unique inverse or expanding triangle pattern in Bitcoin.
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Usual, triangular shape patterns on the Bitcoin chart can be a continuation or a reversal of Bitcoin’s price movements. The pattern shown in Brandt’s post shows two descending trend lines that diverge from each other.
Brandt explains that while this pattern can be misinterpreted as a bullish signalthe absence of a breakout means he would not be executing any trades at this time. He emphasized that he does not make transactions based on opinions, but on the basis of established values chart patterns.
The crypto analyst further said that he avoids trading when a price is range-bound without a clear trend, and only trades when a pattern has been completed.
After Brandt described Bitcoin’s chart pattern as an inverted or expanding triangle, one crypto member suggested it might be better described as a “descending, widening wedge.” Brandt responded by explaining that despite the variety of names for patterns, he prefers to use the terminology developed by Schabacker, Magee and Edwards, who are considered the founders of classical cardmaking.
Agreeing with Brandt’s view that there is “no breakout yet, so no trading,” a member of the crypto community noted that Bitcoin is in a hold position for more than a year, suggesting this may not be the right time to act. Brandt agreed, but emphasized that as a trader he prioritizes risk management and prefers not to go against his established trading strategies.
A latest crypto member suggested that the inverted or expanding triangle pattern in Bitcoin could be a “bullish megaphone or bull flag.” Brandt responded by clarifying that while some might view the pattern as a bull flagit does not correspond to the definitions of the founders of classical graphing.
Insights into Brandt’s classical graph principles
In a more recent one X messageBrandt discussed in detail the effectiveness of using classic chart patterns for trading. He revealed that once classic card patterns are identified, they are resolved in three different ways.
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Brandt noted that 50% of the time, these patterns often change into something unexpected, not following the initial predictions. He added that classic chart patterns break in the expected direction 25% of the time, but then fail to sustain the move, leading to a reversal or loss. Finally, in the remaining 25% of cases, the patterns break out as predicted and move toward the projected goal, fulfilling the expected scenario.
Featured image created with Dall.E, chart from Tradingview.com
