As a seasoned crypto investor with over two decades of trading experience under my belt, I always find it prudent to pay heed to the insights of veterans like Peter Brandt. His latest observation about Bitcoin’s inverted or expanding triangle pattern is indeed intriguing. However, as Brandt himself emphasizes, patience is key when dealing with such patterns.
Experienced trader Peter Brandt has recently brought attention to a fascinating trend in Bitcoin‘s (BTC) price movement. In a recent tweet, Brandt expressed his views on technical analysis and identified that the price behavior of Bitcoin seems to be following an upside-down or widening triangle pattern.
Brandt shared his systematic method of trading, explaining, “I don’t base my trades on personal views. Instead, I rely on traditional charting guidelines to identify my trades. I steer clear of trades when the price fluctuates within a range. My entry point comes after the completion of patterns.”
“BTC displays what is known as an inverted or expanding triangle,” Brandt added.
A triangle on a chart represents a pause in a trend, drawn by connecting trendlines at the high and low points within a narrowing price range. This pattern is either a temporary halt in the current trend or a sign it may reverse. Technical analysts classify triangles as patterns that can continue an ongoing trend or signal a change in direction.
As a researcher studying the dynamic world of cryptocurrencies, I observed that Bitcoin (BTC), the foremost digital currency by market cap, underwent a significant sell-off during the trading session on Sunday. This downward trend persisted into Monday, with Bitcoin reaching an intraday low of $57,663.
As I type this, Bitcoin (BTC) has decreased by 2.09% over the past 24 hours, now valued at $59,450. This is a drop from its peak of $62,755 that was reached on Thursday.
Here’s the warning part
Observing the growing triangular shape on Bitcoin’s price graph is significant, but Brandt advises caution: “Since there’s been no breakout as of now, it’s best not to engage in trading just yet.”
Regardless if the triangle shape is a signal for price continuation, traders are usually advised to watch for breaks in this pattern before deciding to buy, sell, or adjust their positions accordingly.
In technical analysis, a break from a pattern usually indicates the commencement of a fresh trend. However, before this break happens, the direction of the subsequent movement is still uncertain and speculative.
Observing the growing triangle shape in Bitcoin’s price trend indicates it could be preparing for a substantial shift, yet since we don’t have a clear breakout, the future direction of this potential movement is still uncertain.
According to Peter Brandt, it’s crucial to prioritize patience and avoid impulsive actions when considering a trade. Instead, he recommends waiting for clear signals or confirmations before diving in.
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2024-08-12 18:11