Veteran trader Peter Brandt believes that Bitcoin (BTC), after falling more than 30% from a high of $69,000, may form a so-called “double peak” model. 2017.

The CEO of Factor LLC recalled that Bitcoin was unable to extend its all-time high to near $65,000 after the second attempt. At the same time, it showed direct support for the BTC price at the so-called neckline close to $30,000, and warned that it would fall further below this critical level.

Weekly BTC/USD price chart with bimodal pattern. Source: TradingView, Peter Brandt
Is it realistic for the price of Bitcoin to plummet by 50%?
In detail, the traditional map will form two consecutive peaks, each of which leads to a strong downward reversal of value as a sign of decline. The lower target in the double-ended approach is about as deep as the height of the pattern formation.

However, the goal of a double decline is a bit impractical here, because confirming the pattern will show that the price of Bitcoin has fallen by nearly $35,000. This means that in a perfect world, the price of BTC may fall below $0, which is extremely unlikely to happen.

However, if the price falls below the neckline of $30,000, Bitcoin’s ultimate downside target may be the exponential 200-week moving average (200-week EMA, orange wave in the chart below), which is currently about 50% lower than the current price, close to USD 23,500.

BTC/USD daily price chart with 200-week EMA support. Source: TradingView
The 200-week EMA made a significant contribution to the appearance of the bear market bottom, as shown by the upward arrow in the above chart. However, Brandt recalled:

“The chart pattern is not a chart pattern until it is completed and confirmed. Before that, I was only interested in transients.”
BTC price fell again?
Ignoring a possible economic recession, Bitpanda Chief Product Officer Lukas Enzersdorfer-Konrad claimed that the decline in the price of Bitcoin from US$69,000 to US$42,000 was similar to the price fall in May 2021, with a fall of more than 50%. Just to reduce all these losses. Sign up later.

“Like the recent decline, leverage has increased volatility and eliminated most long positions,” Enzersdorfer-Konrad told Cointelegraph in an email, referring to the 2.5 billion that was liquidated in just a few hours at 4pm Dollar. .μ. December. , Which resulted in an overnight correction of approximately 20% for most cryptocurrency assets.

The analyst added:

“Under these conditions, the Bitcoin market will take some time to recover. The overnight chart is still volatile but still bullish over time.”
Related: Bitcoin fell below $47,000, eliminating October profits-has the bear market begun?

From an upward technical perspective, a popular independent market analyst under the pseudonym “wolf” views Bitcoin as an oversold asset based on the Relative Strength Index (RSI) in the daily time chart.

The daily BTC/USD price chart and RSI rebounded. Source: TradingView, @IamCryptoWolf
Wolf expects that the BTC price will test US$51,780 as its next resistance level and expand the upward trend to close to US$60,000.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading action involves risk, and you should conduct your own research when making a decision.

Source: CoinTelegraph

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