Coin World Report:
Legendary trader Peter Brandt recently discussed the current price trend of Bitcoin, emphasizing his bearish stance on the upward trend in his bearish signals.
In his analysis A published on October 21st, Brandt pointed out that a seven-month-long expanding triangle structure continues to influence the price behavior of Bitcoin. This pattern, also known as a “broadening formation,” has been developing since March when Bitcoin reached its all-time high.
The formation consists of two slanting trendlines that diverge over time, creating a widening shape. It is formed by a series of lower lows and lower highs that occurred during Bitcoin’s seven-month consolidation process.
Notably, the expanding triangle observed on the Bitcoin chart is typically a bearish signal. Brandt first noticed the 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 indicates a cautious stance towards the current trend. Meanwhile, Brandt revealed that he has placed a high-risk bet on Bitcoin.
Brandt bullish on Bitcoin, targets $150,000
Specifically, despite the bearish signals, the experienced trader pointed out that he currently holds a bullish position 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, expected 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 is $66,293, experiencing a 2% decline today.
In previous analysis, the seasoned trader emphasized the significance of Bitcoin’s price breaking $72,000 to confirm whether the month-long upward trend in Bitcoin can sustain and establish higher highs, or if a corrective decline is possible. However, Bitcoin failed to reach $70,000, and a correction phase is currently underway, attempting to break the $65,000 level.
Brandt says technical analysis may be of little value
Interestingly, in his recent update, Brandt stated that trendlines 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, trendlines are essentially of little value. Even the clearest and most reasonable area 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
