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.
Bitcoin meets the definition of a descending triangle. Don't let newbie chartists tell you different. Right-angled triangles imply (but do not demand) a resolution thru the horizontal boundary. $BTC pic.twitter.com/DIW1BpMSCV— Peter Brandt (@PeterLBrandt) September 7, 2019
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.
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.
Behold the great bitcoin triangle of 2019 ... the one and only that will decide the future of billions of dollars 🔥 pic.twitter.com/6RlWelgiId— Alex Krüger (@krugermacro) September 7, 2019
As reported earlier by U.Today, Brandt suggested that Bitcoin could have already entered its fourth parabolic phase.