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Market veteran Peter Brandt identifies an important price level that Bitcoin needs to breach to break the current range-bound structure.
in the latest news about Bitcoin, The top trader’s analysis calls attention to several price points and structures, suggesting that Bitcoin is approaching an important zone. This area could determine whether the price moves upward or succumbs to further consolidation or decline.
Bitcoin Struggles
The chart shows a downward-sloping channel that has defined Bitcoin’s movement since Q1 2024. This channel has kept the price fluctuating within a range as support and resistance levels formed.
The most significant among these levels is around $68,224, which Brandt identifies as a “junction of important chart points.” Bitcoin’s movement through this zone is extremely important.
Brandt called the structure an inverted expanding triangle rather than a traditional bear flag. Notably, this triangle formation could suggest an impending breakout – but only if the price manages to breach the resistance at $68,224. Until this happens, Bitcoin remains vulnerable to more downward pressure.
The premier crypto asset has attempted to break free multiple times, but each breakout has failed to hold. This has created a bearish scenario where supply pressures prevent sustained upward movement, leading to further sideways or downward price action.
Interestingly, current market realities suggest Bitcoin could be on the verge of knocking above this level, having recently breached $66K amid the rally yesterday. However, at press time, BTC has faced a correction, now trading for $65,395. Bulls need to reignite the momentum to break above the $68K region.
For context, whenever a formation such as this occurs, a breakout could lead to a significant move. However, Brandt stressed that the situation remains fragile until the market sustains multiple closes above this level.
Market Sentiments
Meanwhile, another market analyst, Colin, discussed a different perspective in response to Brandt’s chart. He highlighted the change in market structure, with Bitcoin recently making higher highs and higher lows. This has fueled optimism among traders.
The recent change in structure from lower highs/lows to higher highs/lows makes me optimistic that we may finally see a breakout, but you're right– until it clears that yellow zone, it's still bouncing between the boundaries.
I think this time is it, though. Sentiment is out…
— Colin Talks Crypto 🪙 (@ColinTCrypto) October 15, 2024
While some believe the bottom is in and a breakout is imminent, others, including Brandt, remain cautious. Colin agrees with this caution. The resistance around $68,224 remains the defining line between the continuation of the current trend and a bullish reversal.
Colin further spotlighted macroeconomic and political factors. He pointed to potential catalysts, such as upcoming elections or shifts in monetary policy, which could impact market sentiment.
Bitcoin Market Correlation
Meanwhile, in a separate disclosure, Brandt emphasized his confidence in Bitcoin’s potential despite the current range-bound movements. He called attention to discussions around Bitcoin’s correlation with traditional assets like stocks, gold, and crude oil is also a topic of debate.
So many people ask how Bitcoin is correlated to…
Stocks…
Gold…
Crude Oil…
et al
Wrong question
In the future the question will be how any asset class is correlated to Bitcoin pic.twitter.com/ocYI5vRS0n— Peter Brandt (@PeterLBrandt) October 15, 2024
However, he argued that Bitcoin is becoming an asset class in its own right, with future correlations expected to shift towards BTC influencing other markets rather than being influenced by them.