Legendary trader Peter Brandt warns that Bitcoin (BTC) is showing the characteristics of a bearish pattern.
Brandt says His 696,600 followers on Twitter that Bitcoin price action seems to indicate that a pennant or bear flag pattern is developing, signaling that another drop is imminent.
“This is known as a pennant or flag and has short-term bearish implications unless negated by a close above the midpoint highs.”
Bearish pennant and flag patterns are used in technical analysis to forecast sharp downward moves. They are slightly different patterns but have the same general result.
Predicting the short-term downtrend, Brandt says that Bitcoin will probably only do one move lower before bouncing higher.
“Maybe one more break to shake, then push higher. But hey, that’s just a guess, and guessing is the best we have to offer. If anyone is dogmatic about his brilliance, turn around and run, protecting your wallet.”
According to Brandt, Bitcoin will eventually hit a new all-time high. He shares a chart showing BTC’s multi-year cycles of making new highs, making a bear market low, and then making a new high. As the story goes, Bitcoin could be in a 38-month cycle from its April 2021 peak, which would imply a new high somewhere around mid-2024.
Brandt has previously predicted that Bitcoin will eventually overtake all other digital assets.
Bitcoin is trading at $26,308 at the time of writing, down 3.6% over the past 24 hours.
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