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Prominent Trader Peter Brandt Still Long on Bitcoin, but Warns Bulls About Major Bearish Price Pattern

  • Alex Dovbnya
    📰 News

    Bitcoin is forming a descending triangle, but that doesn’t necessarily mean that your $7,000 buy orders will get filled anytime soon

Prominent Trader Peter Brandt Still Long on Bitcoin, but Warns Bulls About Major Bearish Price Pattern
Contents

Veteran chartist Peter Brandt, who has decades of experience in commodity trading, recently shared some bad news for Bitcoin bulls. According to Brandt, BTC’s price action is caught in a descending triangle, which could indicate an imminent price breakdown.

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Another price drop is on the cards

Descending triangles are formed when a certain asset prints a string of lower highs and horizontal lows on its macro-price chart. This pattern usually shows that buyers are becoming less enthusiastic, so traders feel emboldened to open short positions.

Notably, Brandt claims that he’s still long on BTC as a position trader, which means that he’s bullish on the top cryptocurrency in the long-term (this position type has the longest holding period). However, as a swing trader, he cannot ignore this major bearish pattern.

On Sept. 6, the Bitcoin price experienced a sharp six percent drop that came almost immediately after Jerome Powell’s comments on crypto.

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A Bitcoin switcheroo

With that being said, this massive descending triangle doesn’t mean that traders should gamble away their money on BitMEX with 100x shorts. Brandt points out that this pattern has a high failure rate, and there is still a possibility that it could resolve upwards.

Hence, it’s just a guessing game until “the great Bitcoin triangle of 2019” is completed. Cryptocurrency trader Alex Krüger is certain that it will decide the future of billions of dollars.

As reported earlier by U.Today, Brandt suggested that Bitcoin could have already entered its fourth parabolic phase.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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Can the US Federal Reserve Kill Bitcoin? Crypto Fund Manager Brian Kelly Knows the Answer

  • Alex Dovbnya
    📰 News

    The Fed could surely stifle the cryptocurrency industry, but it doesn’t have the power to completely kill it 

Can the US Federal Reserve Kill Bitcoin? Crypto Fund Manager Brian Kelly Knows the Answer
Contents

Amidst the growing regulatory pressure in the US, many wonder whether it would be possible for the US Federal Reserve to ban Bitcoin. According to BKCM founder and CEO Brian Kelly, this would be very difficult, but there are certainly some ‘choke points’ that could put a spanner in the works for cryptocurrency enthusiasts.

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The Fed won’t stop Bitcoin

On Aug. 8, Kelly joined the team of CNBC’s ‘Squawk Box’ to discuss the future of Bitcoin as a hedge asset. Anthony Scaramucci, the former White House communications chief, was another notable guest who appeared on today’s show.

When 'the Mooch' stepped into the conversation and asked whether the Fed can put the brakes on Bitcoin, Kelly replied that it would be hard to achieve.

In terms of killing, that’s very difficult, that’s very much like the Internet”    

However, the central bank could block fiat on-ramps. That would make it much harder to buy BTC.

Major exchanges, such as Coinbase and Gemini, campaign for regulations to retain access to the fiat market.

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Bitcoin as a macrohedge

Kelly claims that macro funds started trading BTC as an alternative to gold in 2019. Still, the long-term Bitcoin bull admits that he hates the term ‘safe haven’ given the asset’s extreme volatility.

As reported by U.Today, the devaluation of the Chinese yuan conveniently coincided with Bitcoin breaking above $12,000, which is clearly a sign of capital flight.

When asked by Melissa Lee whether there it affected the rest of the crypto-loving Asian market, Kelly replied there was indeed a ripple effect. 

South Korea, Vietnam, most of Southeast Asia, that’s where you are seeing most of the capital flight coming from”      

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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