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Veteran market watcher Peter Brandt identifies a congestion in the price movements of Bitcoin, which he believes is a down channel rather than a flag.
In a recent update, Brandt pointed out a congestion phase in Bitcoin, emphasizing its classification as a down channel. The season analyst noted that flags typically last between four to six weeks, while the present congestion in Bitcoin has extended beyond this timeframe, hence its labeling as a down channel.
I try to be as honest as possible to Edwards/Magee/Schabacker in pattern labeling. The current congestion in Bitcoin is NOT a flag (it has lasted too long) but appears as a down channel. $BTC pic.twitter.com/OJcpML6VPT
— Peter Brandt (@PeterLBrandt) July 20, 2024
Bitcoin Likely Due for Trend Reversal
Brandt’s analysis highlights the significance of the current down channel in Bitcoin’s price action within the context of its broader uptrend.
The down channel is characterized by two parallel trendlines, suggesting a controlled price action within a defined range, indicative of a consolidation phase within the larger bullish trend.
Notably, these trendlines are Bitcoin’s 18-week and 8-week moving averages, providing both long-term and short-term trend perspectives. The recent interaction between these moving averages could signal potential trend changes, further guiding traders in their decision-making processes.
Brandt has identified a key resistance point at $71,980.00, a crucial point to watch for a potential breakout.
Notably, this latest assessment from Brandt follows his repeated warnings that Bitcoin could be heading for bearish days despite recent price gains. In a previous analysis during a period of selling pressure, he argued that the bull market might be over, predicting a potential correction to $48K.
Analysts Believe Bitcoin Still in Uptrend
Following Brandt’s analysis, various market analysts and traders shared their insights and reactions. One commenter suggested that the pattern might be a descending broadening wedge, to which Brandt responded, acknowledging the possibility of the pattern morphing.
Some analysts viewed the prolonged period around the $65,000 area post-halving as potentially bullish, speculating a possible breakout to the upside rather than the bearish sentiment Brandt suggests.
Another critic argued against Brandt’s interpretation, emphasizing that technical observations on charts are not absolute and open to interpretation.
In addition to Brandt’s analysis, other market watchers have previously pinpointed crucial price levels that could determine Bitcoin’s next direction. Micro2Macro, a pseudonymous market analyst, highlighted the 200-day moving average as critical.
Moreover, while Brandt is bearish, other analysts continue to argue that Bitcoin will attain new lofty highs. Market pundit John Osterman predicted a significant price surge for Bitcoin after the 2024 halving, potentially surpassing $400,000. Osterman’s analysis draws on historical trends, noting substantial price increases following previous halving events.
At press time, Bitcoin hovers around $67K, reflecting a growth of 8% over the past week.