Brandt sees the asset forming a bullish chart pattern on higher time frames.
In a tweet yesterday, Veteran trader Peter Brandt shared a bullish outlook on Bitcoin in response to recent price action.
While Brandt cautions that no one knows what the market will do, and this is his “dunce-hat” prediction, the analyst sharing his weekly and monthly chart indicates that Bitcoin is potentially forming an inverted head and shoulders chart pattern. In the short term, the veteran trader sees a rally to about $25k before the asset’s price pulls back to retest the potential neckline to complete the pattern. Notably, Brandt places the neckline support at about $18,387.5.
In the long term, Brandt sees the asset rallying as high as 50k in 2023 and over 100k in 2024 after a drop below $34k. Per Brandt’s analysis, it is clear that the veteran believes that we have already seen the bottom of this cycle. It implies that we will no longer see a drop to $13k, which was the last clear bottom prediction by the analyst.
In the past week, Bitcoin has staged a massive rally to the disbelief of many market participants. As reported on Saturday, a $4 billion purchase of open futures market orders triggered a massive short squeeze as the asset’s price rallied to $21k from below $20k in a few hours.
At press time, Bitcoin appears to be trading comfortably above the $21k price point at $21,149.92, up 2.21% in the last 24 hours and 22.74% in the past seven days.
Material Indicators warned on Saturday that whales are taking profit as retail traders jump in out of fear of missing out (FOMO). Warning that it could lead to a substantial price retracement, the platform cautions that the $18.5k price support must hold. Remarkably it is within range of Brandt’s neckline support and Maartunn’s range support.
#FireCharts shows #Bitcoin liquidity is on the move. Retail is buying, whales are taking some profits…hmm
Keep an eye on the buy wall. If it rugs, $18.5k must hold.#NFA pic.twitter.com/6vFgMsNG5B
— Material Indicators (@MI_Algos) January 14, 2023