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Bitcoin now trades at a critical juncture as it continues to trend lower while showing signs of potential volatility ahead.
In this latest bitcoin price news, veteran trader Peter Brandt pointed out that Bitcoin (BTC) remains in a sequence of lower highs and lower lows. According to Brandt, BTC must close above a key level to reverse this trend and kickstart an uptrend.
Lower Highs Dominate BTC Price Action
Bitcoin’s daily price chart shows a pattern of descending highs that have dominated price action over the past six months. Bitcoin reached an all-time high of $73,666 in March 2024, which marked the peak of its upward momentum.
However, the next high of $72,762 occurred in April, indicating a slight decline. This set the tone for the downward movement that followed. Also, the July 29 high of $70,162 solidified Bitcoin’s bearish trend, as it continued to make lower highs.
Brandt suggested that Bitcoin’s inability to surpass these highs means the market remains in a bearish structure. The most recent high of $65,200 shows that Bitcoin is still struggling to break the upper resistance of the descending triangle.
Bitcoin Sees Expanding Triangle Pattern
The daily chart reveals an expanding triangle pattern, associated with increasing volatility. This broadening formation has been building for months, with Bitcoin making larger swings between lower highs and lower lows.
Notably, the expanding triangle suggests that Bitcoin could soon make a big move. If it breaks out of this pattern, the direction could either confirm the current downtrend or signal a reversal.
Interestingly, Peter Brandt identifies the $70,162 high attained on July 29 as a pivotal level. This region serves as a crucial resistance. A decisive close above this level would break the trend of lower highs and potentially start a bullish run.
On the downside, key support levels are at $53,219 and $49,130. These lower lows suggest that if Bitcoin fails to maintain its current levels, it could revisit these points. A drop below $49,130 would confirm a continuation of the downtrend.
Meanwhile, Bitcoin currently trades for $63,574, with the Average Directional Index standing at 19.13. An ADX below 20 suggests the market is not strongly directional. This could indicate that Bitcoin is in a consolidation phase, awaiting a stronger breakout before deciding on its next major move.
Could Bitcoin Target $130K?
Interestingly, market analyst Colin also recently discussed Bitcoin’s price movements. He suggested that the premier crypto asset could soar to as much as $130,000 as its minimum target if it breaks the $73K all-time high set in March.
Whether you call this a "Cup and Handle" or an "Inverse Head and Shoulders", if the resistance line around $73k gets surpassed, the minimum #bitcoin price target is approximately $130,000.
$1️⃣3️⃣0️⃣,0️⃣0️⃣0️⃣
How we can use this knowledge:
🔸 If the $73k… pic.twitter.com/BNNkqR0iSv
— Colin Talks Crypto 🪙 (@ColinTCrypto) September 24, 2024
He noted that Bitcoin is currently trading within a pattern that could be interpreted as a cup and handle pattern or an inverted cup and handle structure. Notably, Brandt previously identified this pattern on the Bitcoin-to-gold chart.
However, another market watcher argued that Bitcoin’s current structure could be a bull flag. Responding, Colin cited Brandt, noting a bull flag could not stretch out for so long. Brandt confirmed this but suggested that a longer-term bullish trend could ensue following the violation of a bear channel.