Market analyst Peter Brandt has warned that the Bitcoin (BTC) price is entering a period of technical weakness and is now “preparing to issue a sell signal.”
Experts say Bitcoin’s recent moves suggest that bullish momentum may be running out. Opens the door to significant correction in the short term The asset has moved away from the $70,000 mark and is trading at 66,600 at the time of publishing this article.
This prediction is triggered by the identification of a specific formation within the price chart. Brandt explained that signals are seen through technical analysis. Detects formation of “rising wedge pattern”.
An ascending wedge is a chart pattern that is generally interpreted as a bearish reversal pattern, even though it indicates an upward slope. That is, after a period of increase, Prices usually plummet.
This number is formed when the price of BTC (or any other financial asset) fluctuates between two trend lines that converge upward. A resistance line is a ceiling that the price cannot exceed, connecting a series of highs even higher. In the current case, the highs identified by Brandt are located at $72,271, $74,050, and $71,777. Meanwhile, the support lines that act as bottoms to support the decline join the rising lows ($60,000, $62,510, $65,618).
The key to this pattern is that the slope of the support line is steeper than the resistance line. This shows that: Although lows rise quickly, buyers are finding it increasingly difficult to push prices to new highs..
The price is currently approaching the lower trend line, and a clear break below this level, especially at the daily close, would confirm the aforementioned sell signal. If this happens, the theoretical downside target would be closer to $60,000, the psychological level that was already supporting Bitcoin during the February 6 crash.
Brandt’s opinion joins that of analyst Willy Wu. Willy Wu believes the Bitcoin market is still about a third of the way through the bear cycle. Expecting an extension of the virtual currency winteras reported by CriptoNoticias.
On the contrary, Michael van de Poppe argues that the bear market may have bottomed out, as the recent correction remains within the market’s typical historical lows, and Bitcoin will go through a phase of horizontal integration. As a prelude to a new upward trend.
On-chain company Glassnode, on the other hand, has adopted a more balanced stance, describing the current price structure as “constructive rather than overtly bullish,” without identifying negative signals like Brandt and Wu, and without immediately issuing bullish predictions.
