Veteran trader Peter Brandt updated his Bitcoin price outlook in a recent viral tweet.
Looking at Brandt’s chart analysis, a clear right-angled broadening triangle pattern has emerged in Bitcoin’s recent price action. This formation, characterized by a horizontal support line and an upward-sloping resistance line, typically suggests increasing market volatility. The price recently broke below a critical support level near $92,333 after being rejected at the sloping resistance line above $108,000.
Brandt’s analysis highlights a potential target zone around $76,614, suggesting Bitcoin might test lower levels in the $70,000 range. The trader has positioned his stop-loss at $108,358, just above the resistance line, accounting for potential upward volatility.
Multiple Indicators Support the Analysis
Several technical indicators appear to reinforce this bearish outlook. The 8-period Simple Moving Average shows the price has broken decisively below it, while the Average True Range (ATR) sits at 3,852, indicating moderate to high volatility. The Average Directional Index (ADX) reading of 35.01 points to a strong trend formation, which, combined with recent price action, suggests bearish momentum.
The Bitcoin chart reveals key support levels to watch, with $90,675 serving as a crucial threshold that was tested before the recent decline. If the price manages to reclaim the $92,333 level and moves above the moving average, it could invalidate the bearish scenario. However, a move below $76,614 would align with the bearish target and validate the triangle pattern’s projection.
Increased selling volume has accompanied recent price movements, lending additional weight to the potential bearish breakout. It’s worth noting that Brandt’s analysis emphasizes possibilities rather than certainties, particularly regarding Bitcoin’s broader parabolic trend structure. His careful wording suggests he’s exploring potential scenarios rather than making definitive predictions about future price movements.
Read also: XRP Price Approaches Key Level: Is a New High on the Horizon?
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