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Veteran Trader Peter Brandt Talks About Bitcoin Price Rally at U.Today
U.Today – , the largest cryptocurrency by market value, recently hit $63,000 and veteran trader Peter Brandt has expressed his opinion on this bullish price trend.
Bitcoin is on track for a fourth straight day of gains, hitting highs of $63,293 in today’s trading session after recovering from Friday’s lows of $56,538.
According to Brandt, Bitcoin (BTC) may have developed its oft-repeated “Hump Slump Bump Dump Pump” chart pattern, a pattern he has observed in the past.
“Bitcoin BTC may exhibit its oft-repeated Hump Slump Bump Dump Pump chart structure,” Brandt wrote in a tweet, suggesting that Bitcoin’s price action may follow a definite pattern.
This chart construction is characterized by a “bump,” or increase in prices, followed by a “slump,” or decrease in prices. The “Bump” phase shows a rise in prices, followed by a “Dump,” which is another decline. Finally, the “Pump” phase represents a major upward movement, often resulting in new highs.
Are Bitcoin Bears Trapped?
Brandt added that “the July 5 attempt to make a double top was a bear trap, confirmed by the July 13 close. The most likely scenario now is that the bears are trapped. The close below $56,000 negates this interpretation.”
On July 5, according to Brandt, Bitcoin attempted to form a double top, a bearish pattern that led to lows of $53,499. However, Brandt identified this as a bear trap, a false signal that leads traders to believe the price will continue to decline. This view is not far-fetched, as Bitcoin had been falling for days prior to this date.
However, a positive close on July 13 invalidated the double top. Brandt suggests that the most likely scenario now is that the bears are trapped. This interpretation suggests that Bitcoin could continue its upward trajectory.
However, Brandt notes that a close below $56,000 would negate this bullish outlook, making it a key level for traders to watch. At the time of writing, BTC was up 5.05% over the past 24 hours at $62,642.