Despite the relatively neutral sentiment on the cryptocurrency market, some renowned analysts believe the first cryptocurrency is far from an uptrend and currently showing a bearish dynamic, potentially diving down in the foreseeable future.
The seasoned trader Peter Brandt recently shared his opinions on where he believes the price of Bitcoin is right now. He noted that contrary to what some may believe, the consolidation phase that Bitcoin is currently going through does not resemble a bullish flag pattern. As an alternative, Brandt observed a downward channel, indicating a potential bearish trend.
Brandt’s analysis is predicated on the classical charting methods developed by Schabacker Edwards and Magee. He felt that pattern labeling ought to adhere to these accepted standards. According to Brandt, the current Bitcoin pattern has persisted for far too long to be taken seriously as a warning indication. Instead, the pattern is more akin to a down channel, which often indicates further potential downside.
The price movement of Bitcoin as seen on the provided chart, which displays a series of lower highs and lower lows, is consistent with a down channel. This pattern gradually lowers the price due to resistance levels, which typically denotes a declining phase of the asset.
In the event that the downward trend continues, there may be increased selling pressure on Bitcoin, which could push prices below their current levels. This view contradicts the hope that some investors have for the future of Bitcoin, especially in view of the divergent signals from various technical indicators.
In general, it is not clear whether or not the bullish rally will continue in the upcoming week. One way or another, we need a fresh inflow of funds in order to see Bitcoin at $70,000 or above.
