Legendary Trader Peter Brandt Sees Bullish Shift for Bitcoin

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Over the past day, the cryptocurrency market has experienced significant volatility, resulting in over $700 million worth of liquidations. Bitcoin (BTC) spearheaded the downturn, dipping to a two-month low of around $89,256 before rebounding above $94,000. Despite this temporary recovery, the overall market remains tense, with smaller alternative coins (altcoins) suffering the most pronounced declines.

On Bitcoin’s daily chart, there appeared a high wave doji, a type of candlestick pattern that underscores market indecision and intense volatility. This pattern was followed by a range low sweep and recapture, indicating a potential change in trend from bearish to bullish.

Experienced investor Peter Brandt underscored the significance of this advancement in relation to the ongoing fluctuations in Bitcoin’s market value.

Significant indeed

— Peter Brandt (@PeterLBrandt) January 14, 2025

Prior to the recent ups and downs in Bitcoin’s price, Brandt had been closely monitoring the development of a potential “head-and-shoulders” pattern on its chart.

What’s next for Bitcoin (BTC)?

From his viewpoint, there were three potential scenarios. The first scenario suggested a bearish progression, where the pattern would finish and Bitcoin could move towards $76,000. The second scenario involved a bear trap, in which a temporary drop would instill greater confidence among bears, but the price would subsequently surge back strongly, leading to a short squeeze. The third scenario was less definite: the current shape might transform into a broader pattern, which is more challenging to foresee, and it wouldn’t be immediately clear whether it would lean bullish or bearish.

Yesterday’s occurrences seem to be shaping a shift in our previous state. Remarkably, bulls regained control over crucial thresholds rather swiftly, leading one to wonder if the initial breakthrough never truly transpired. It appears we might have fallen into a bear trap or perhaps it was merely a prelude to something more significant.

At present, traders are closely monitoring Bitcoin’s movement, waiting to see if it manages to surpass the $97,500 threshold. Should this happen, it could potentially initiate another wave of growth. If Bitcoin regains momentum, it might lend a hand to the overall cryptocurrency market as well.

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2025-01-14 15:13