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

Libra Coin News
Sun, 09/08/2019 - 10:52
Alex Dovbnya
Bitcoin is forming a descending triangle, but that doesn’t necessarily mean that your $7,000 buy orders will get filled anytime soon
Cover image via U.Today

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.

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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