Veteran trader Peter Brandt looks at the state of Bitcoin after its massive rally above $40,000 to determine if the price has indeed bottomed.

Brandt says he analyzes trader sentiment towards Bitcoin to gauge what’s next for the top cryptocurrency.

“Just as the laser eye marked the April high and widespread discussions of $100,000 marked the November high, the bulls failed and the $20,000 forecast marked the January low.”

The source: Peter Brandt

The laser eye trend emerged last year, with members of the crypto community using laser eyes on their social media avatars to cheer Bitcoin by $100,000. According to Brandt, the move marked the top of the largest cryptocurrency.

Brandt says some people who used to wear laser eyes now expect the price to drop below $30,000. The veteran trader believes the sharp shift in sentiment could indicate BTC is nearing a bottom.

Brandt sees the change in mood as a possible ground signal said BTC has yet to reach a technical bottom that could set the stage for a trend reversal.

“There is not the usual buy signal to build the chart bottom like there was in November 2015, April 2019, October 2020 or even July 2021. So time will tell if the bitcoin chart bottom is reached or not.

A recognizable completed pattern greatly increases the likelihood of a bottom. If the channel from 10.11. is completed, the chances of bottoming increase, but the channel is a diagonal pattern, which is not ideal as BTC has hit horizontal bottoms in the past and it is clear that no bottom has formed yet.

Brandt is referring to the descending channel on his chart, which has been holding Bitcoin in a downtrend since November. The trader stressed that while BTC has broken out of the channel, it may not be enough for it to bottom.

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