Bitcoin
Veteran Trader Peter Brandt Talks Bitcoin Price Rally to U.Today
U.Today – , the largest cryptocurrency by market cap, recently hit $63,000, and veteran trader Peter Brandt weighed in on the bullish price action.
Bitcoin is on track for its fourth consecutive 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 be revealing its oft-repeated “Hump Slump Bump Dump Pump” chart construction, a pattern he has observed in the past.
“Bitcoin BTC may be unfolding its oft-repeated Hump Slump Bump Dump Pump chart,” Brandt wrote in a tweet, suggesting that Bitcoin’s price action may be following a defined pattern.
This chart construction is characterized by a “Hump” or price increase, followed by a “Slump” or price decrease. The “Bump” phase shows a price increase, followed by a “Dump”, which is another decrease. Finally, the “Pump” phase represents a large upward movement, often resulting in new highs.
Are Bitcoin Bears Trapped?
Brandt added that the “double top attempt on July 5 was a bear trap, confirmed by the close on July 13. The most likely scenario now is that the bears are trapped. The close below $56,000 negates that 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 misleads traders into believing that the price will continue to fall. This view is not unreasonable, as Bitcoin had been falling for days leading up 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, thus remaining a key level for traders to monitor. At the time of writing, BTC is up 5.05% over the past 24 hours to $62,642.