Crypto News Report:
Renowned trader Peter Brandt recently discussed the current price trend of Bitcoin, emphasizing his bearish bet on the upward trend in his bearish signals analysis.
In his analysis published on October 21st, Brandt pointed out that a seven-month-long descending broadening wedge structure continues to impact Bitcoin’s price behavior. This pattern, also known as an “expanding formation,” has been developing since March when Bitcoin reached its all-time high.
The formation consists of two inclined trend lines that diverge over time, forming a widening shape. It emerges from a series of lower lows and lower highs within Bitcoin’s seven-month consolidation process.
Peter Brandt Bitcoin Chart
It is worth noting that the descending broadening wedge observed on the Bitcoin chart is typically a bearish signal. Brandt first noticed this pattern in July.
In his latest analysis, he emphasized that despite Bitcoin’s upward trend since last month, this structure has not been violated. This suggests a cautious stance towards the current trend. Meanwhile, Brandt revealed that he has made a high-risk bet on Bitcoin.
Brandt remains bullish on Bitcoin, with a target of $150,000
Specifically, despite the bearish signals, the experienced trader stated that he currently holds a bullish stance on Bitcoin. He admitted that going long on Bitcoin at this time is his most significant speculative position.
He released a chart highlighting his expected target for Bitcoin in this cycle, which is a high of $150,000. He expects this target to be achieved by September 2025.
In Monday’s analysis, Bitcoin’s trading price reached as high as $69,500. Meanwhile, as of the time of writing, the Bitcoin price stands at $66,293, a 2% decrease today.
In a previous analysis, the seasoned trader emphasized the importance of Bitcoin’s price breaking through $72,000 to confirm whether the month-long upward trend can sustain and potentially lead to corrective declines. However, Bitcoin failed to reach $70,000, and a correction phase is currently underway, with an attempt to break through the $65,000 level.
Brandt says technical analysis may be of little value
Interestingly, in his recent update, Brandt stated that trend lines in technical price chart analysis are essentially of little value.
He pointed out that even the clearest and most accurate price patterns are only reliable about 60% of the time. According to him, the true value of price charts lies in risk management and identifying asymmetric trading opportunities.
In technical price chart analysis, trend lines are essentially of little value. Even the clearest and most reasonable range price patterns are reliable only about 60% of the time.
The value of price charts lies in risk management and identifying asymmetric trades.
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– Peter Brandt (@PeterLBrandt)
October 22, 2024
