The veteran trader, who called 2018 a crash, says Bitcoin is not dropping in price.
Bitcoin (BTC) may have printed the classic “head and shoulders” pattern, but the bulls can still win, says veteran trader Peter Brandt.
In one tweet On October 27, Brandt, known for his accuracy in BTC price predictions, refused to take a bearish stance on Bitcoin.
Brandt: Bitcoin could be confronted with “major overload”
Despite another write-off of leveraged traders on Wednesday of nearly $ 58,000, analysts are generally calm and even calling for a return to highs as a show of strength will surprise many.
There is also little reason for Brandt to reject Bitcoin because of the current price campaign.
“Head-and-shoulders don’t always create a bear market for the implied goal or beyond,” he wrote.
“This pattern could also fail (bullish) or become a major overload (exhaustion).”
An accompanying chart shows last week’s all-time high of $ 67,100, surrounded by two lower highs creating what is known as a “head and shoulders” formation.
Traditionally, such events preclude a sustained drop in the price of an asset, with the price rally drying up at a certain point and becoming unsustainable.
The idea that Bitcoin could meanwhile slide into a longer sideways phase has re-entered history in the last few days. Cointelegraph employee Michaël van de Poppe previously forecast a slow decline towards $ 90,000, a number that is unlikely to hit until early next year.
Everything is planned
For those concerned about another loss in BTC / USD, a cut in funding rates – now almost “reset” after leverage is depleted – could allay concerns.
Related: Bitcoin price decreased compared to October 2017, BTC boom forecast before 2022
Binance was a particular source of interest during the week as large bullish bets created an unwieldy setup that eventually broke down.
Financing by memory card at 55% APR and Binance at 68% APR
While Deribit is 15% and FTX is 7% …
Looks like we have to exterminate the monkeys again …
– Will Clemente (@WClementeIII) October 26, 2021
The spot price is currently around $ 59,000, which pushes Bitcoin up further to potentially hit a worst case month-end closing of $ 63,000. Its source, analyst PlanB, correctly predicted the month-end prices for August and September – $ 47,000 and $ 43,000, respectively.
In contrast, November will end a lot higher at $ 98,000.