Veteran trader Peter Brandt warns that Bitcoin (BTC) is about to lose all bullish momentum following the market-wide crypto correction.
Brandt, who rose to legendary status after calling the crypto king’s meltdown in 2017, tells his 698,500 X followers that Bitcoin is now at risk of undoing its recent uptrend as it approaches a crucial price area.
Last month, Brandt shared a chart showing how Bitcoin managed to break out of a reverse head-and-shoulders reversal pattern after breaking through the price wall at around $25,000, indicating that BTC is no longer in a downtrend.
says Brandt,
“Bitcoin BTC’s decline is once again testing the neckline on the underlying inverted head and shoulders [pattern]. A close below 24,800 (the low of the previous retest) would hurt the daily and weekly charts.”
According to Brandt, the second retest of the inverted head-shoulder neckline increases the probability that the bullish reversal pattern will fail.
“The fact that we are here again is highly suspicious.”
The trader also says that Bitcoin has breached a diagonal support that has kept BTC in an uptrend since the start of the year. Brandt says BTC is likely to remain bearish unless it recovers the uptrend line.
“As a swing trader, I would respect the trendline violation. So my positions would be short or flat. Only if a bear trap is actually “popped” would I consider it a bullish development.
At the time of writing, Bitcoin is trading at $25,937, above the inverted head and shoulders neckline but well below the diagonal support.
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Image generated: Midway through the journey
