Bitcoin (BTC) may have printed the classic head and shoulders pattern, but bulls can still win, says veteran trader Peter Brandt.
In a tweet on October 27, Brandt, who is known for his accuracy when it comes to Bitcoin price predictions, dismissed the bearish trend in Bitcoin.
Brandt: Bitcoin May Face “Greater Congestion”
Despite approaching $ 58,000 in a new survey of lenders on October 27, analysts remain largely calm, even demanding a return to the top in a show of strength that will surprise many.
There is also a good reason for Brandt to ditch Bitcoin amid current price action.
“Head and shoulders do not always have to lead to a bear market for the intended target or beyond,” he wrote.
“This pattern can also crash (up) or become severe (tiresome) overload.”
The accompanying chart shows last week’s high of $ 67,100 surrounded by two lower peaks, resulting in a so-called head and shoulders formation.
The BTC / USD chart shows a head and shoulders pattern. Source: Peter Brandt / Twitter
Traditionally, such events prevent an ongoing downtrend for an asset when the uptrend is exhausted and cannot continue beyond a certain point.
Meanwhile, the idea that Bitcoin could slip away during an extended period of sideways movement has made a comeback in recent days. Cointelegraph contributor Michael van de Poppe previously predicted a slow drop to $ 90,000, and it probably won’t happen until early next year.
Everything will be planned
For those worried about further losses in BTC / USD, lower funding rates – now excluding the “reset” after a cut in leverage – may soothe concerns.
RELATED: Bitcoin price decline is in line with October 2017 as Bitcoin outlier is expected until 2022.
Binance was of particular concern during the week with a lot of upside efforts that created a tricky setup that ultimately collapsed due to the recession.
The current spot price of around $ 59,000 is increasing Bitcoin’s rally and could potentially reach a “worst case scenario” at the end of the month at $ 63,000. The source, a PlanB analyst, correctly predicted the August and September closes at $ 47,000 and $ 43,000, respectively.
On the other hand, November should end at $ 98,000 much higher.