Savvy old-school commodity trader Peter Brandt has published an X Twitter post to share what he expects may happen to the leading global cryptocurrency Bitcoin soon and this prediction does not sound bullish.
His post came out as Bitcoin has again slipped down and is changing hands at $25,958 at press time.
A close below $24,800 for Bitcoin?
Brandt tweeted that currently, as Bitcoin continues to decline, it is once again testing the neckline of the underlying inverted Head & Shoulders pattern on the chart. He believes that Bitcoin going down and closing under the $24,800 level (the low hit by BTC during the previous retest) “would do damage to the daily and weekly graphs”.
He finished the post with a sarcastic self-punching statement, mirroring the trolling some in the crypto community pour upon him for his crypto predictions – “But hey, what do I know? I am only a boomer who does charting.”
An inverted H&S pattern is a reverse pattern on charts that usually indicates that a bearish trend is about to turn bullish.
The decline in Bitcoin $BTC is once again retesting the neckline on the underlying inverted H&S. A close below 24,800 (the low of the previous retest) would do damage to the daily and weekly graphs. But hey, what do I know? I am only a boomer who does charting. pic.twitter.com/Wj5JhFzNdZ
— Peter Brandt (@PeterLBrandt) August 18, 2023
Brandt expects the uptrend line to be broken
Earlier this week, the prominent trader tweeted that he believed Bitcoin was challenging the multi-contract trendline from the 2023 bottom, adding that he expected Bitcoin’s move through the month of August to be a bear signal or bear trap.
Brandt tweeted that being a swing trader he expects the upward trendline to be violated, so he would choose either short or flat positions. “Only if a bear trap is actually “sprung” would I consider it a bullish development. I strongly prefer horizontal chart construction.”
