Would Bitcoin Fall Below $60,000 Again? Analyst Reveals A Concerning Trend For BTC
Amid the continuous blend of bulls and bears from Bitcoin in recent months, Trading Guru Peter Brandt has shared in his latest post a worrisome pattern observed on the Bitcoin price chart. According to Brandt, Bitcoin appears to be on a downward trend. The legendary trader said in a recent post on Elon Musk’s social media platform X: “The series of lower highs and lower lows continues.”
What Are the Implications Of This Pattern
Notably, the consistent lower highs and lows as observed by Brant might just be an indicator to a cooling of the recent bullish fervor. Since Bitcoin has hit a peak above $73,000 in March, the asset has been unable to reclaim this all-time high.
Related Reading: Is Bitcoin Poised for a September Price Surge? What Traders Need to Know
Particularly, whenever BTC attempts to rally, moving closer to its March peak, the asset only appears to hit a ceiling at the $70,000 region and then trade lower than the previous swing low. This pattern of consecutive lower highs and lower lows is traditionally seen as indicative of a bearish trend at play.
While Brandt’s post can be seen as quite insightful, the comment section of the post suggests that is not the type of insights many are looking for. Scrolling through the comments, Brandt faced criticism for this highlighted pattern.
An X user specifically pointed out perceived inconsistencies in Brandt’s bullishness for Bitcoin, citing previous comments made by Brandt that were more optimistic.
WTH @PeterLBrandt you were bullish a week ago saying how great the chart looked!!
— Jordan Wirsz (@JordanWirsz) August 1, 2024
Regardless, other prominent figures in the crypto space were more candid with their comments. Willy Woo, for instance, weighed in on the discussion, noting:
That’s the thing with short term markets, you never know if the “lower high” was in fact the lower high before the next rebound or in fact it really printed, you only know with sufficient hindsight.
What’s Behind The Current Bitcoin Downtrend?
Meanwhile, Bitcoin is facing bearish pressure. The asset has fallen by 5.1% in the past 24 hours to trade below $63,000 at a price of $62,901 at the time of writing. This decline has erased more than $50 billion from its market cap in just the past day alone.
Interestingly, despite this bearish performance, Bitcoin’s trading volume has surged over the same period from $24 billion yesterday to $28 billion as of today.
According to a CryptoQuant author on the QuickTake platform, the current plunge in Bitcoin is caused by the movements in age band in which large sum of BTC been held for years has moved since the asset touched the $70,000 mark recently.
Despite this selling pressure, the analyst noted:
We are very close to a recovery, but it seems like it will take a bit more time. I strongly recommend checking the age bands to monitor potential liquidity and sales.
Featured image created with DALL-E, Chart from TradingView