Bitcoin is currently undergoing a period of record low volatility. However, the asset appears to be a “challenging multi-contact point trendline” that can be traced to its lowest point in 2023.
This could offer insights into the future direction of the leading crypto-asset, according to renowned veteran trader Peter Brandt, who said the largest cryptocurrency by market capitalization could drop further.
The prediction comes as BTC finally broke off from its narrow range and dived to a two-month low of $28.3k.
In his latest tweet, Brandt speculated that if bitcoin moves south of the trendline that is located below $28,000, it would indicate the continuation of a bearish trend or a bear trap.
The founder and CEO of proprietary trading firm Factor LLC further added that the trendline violation negates the bullish narrative.
As a swing trader I would respect the violation of the trendline. So, my positions would be either short or flat. Only if a bear trap is actually “sprung” would I consider it a bullish development. I strongly prefer horizontal chart construction.
— Peter Brandt (@PeterLBrandt) August 16, 2023
Bitcoin’s price action has been dull for the most part, especially after declining slowly since its July peak.
The latest downward price action extended its monthly losses to nearly 6%.
However, Fundstrat analyst Tom Lee remains a major Bitcoin bull. He recently predicted an influx in demand for bitcoin if a spot BTC ETF gets approved in the US.
The company’s crypto strategists even forecasted a price range of $150,000 to $180,000, but only if such a product sees the light of day.
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