Peter Brandt: Bitcoin (BTC) Is Not Forming a Bullish Flag, But a Downward Channel, Predicts Further Downtrend

Despite the relatively neutral sentiment on the cryptocurrency market, some renowned analysts believe the first cryptocurrency is far from an uptrend and

Some analysts believe that Bitcoin is currently showing a bearish dynamic, despite the relatively neutral sentiment on the cryptocurrency market. This could indicate a potential downtrend in the coming weeks.

Seasoned trader Peter Brandt recently shared his analysis, suggesting that the consolidation phase in Bitcoin's price chart does not align with a bullish flag pattern, as some may interpret it. Instead, Brandt observes a downward channel, indicating a potential bearish trend.

Brandt's analysis is based on classical charting methods, specifically those outlined by Schabacker Edwards and Magee. He emphasizes the importance of adhering to accepted standards in pattern labeling. According to Brandt, the current Bitcoin pattern has been unfolding for far too long to be considered a warning indication. Instead, the pattern more closely resembles a down channel, which typically indicates further potential downside.

The price movement of Bitcoin, as depicted in the provided chart, showcases a series of lower highs and lower lows, which is consistent with a down channel. This pattern gradually lowers the price due to resistance levels, typically indicating a declining phase of the asset.

In the event that the downward trend continues, we may see increased selling pressure on Bitcoin, potentially pushing prices below their current levels. This view contrasts with the hopes of some investors for the future of Bitcoin, especially considering the divergent signals from various technical indicators.

Overall, it remains uncertain whether the bullish rally will continue in the upcoming week. However, to see Bitcoin at $70,000 or above, we will need a fresh inflow of funds.

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