Legendary trader Peter Brandt has a sobering take on Bitcoin’s (BTC) recent price bounce. While he is impressed by the recent jump from $55,000 to $64,000, Brandt points out that the overall trend remains troubling. Despite the hype around the halving and ETFs, the sequence of lower highs and lower lows is still in play.

Brandt, a well-known figure in trading with almost 50 years experience on financial markets, shared his latest insights through a price chart. The chart shows that from March until now, Bitcoin has not been able to reach higher highs and continues to set lower lows. This ongoing pattern suggests a downtrend trend, even though the current bounce seems promising.

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In the subsequent social media exchange, the trader discussed the possibility of a head and shoulders pattern forming on the cryptocurrency's monthly chart. This pattern, known for signaling potential market reversals, consists of three peaks: a higher peak (the head) between two lower peaks (the shoulders).

Source: Peter Brandt

If Bitcoin were to develop this pattern, it could indicate that a bearish shift in price direction might be on the horizon.

Could be for sure. This is a real consideration of mine and has been and continues to be. But the burden of proof must first be for daily chart to fall in line

— Peter Brandt (@PeterLBrandt) July 19, 2024

Nevertheless, Brandt noted that while this pattern is a real consideration, it has not been confirmed yet. He emphasized that the daily chart needs to show further evidence before people draw any definitive conclusions about the pattern’s validity.

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The cautious tone of the veteran trade is a reminder to stay alert, even with the recent positive movement of BTC.