Peter Brandt warns bitcoin could fall to $78,000 - here's why it's so shocking
Peter Brandt suggests #bitcoin could fall to $78,000, if a key level is broken
Bitcoin The coin's trajectory depends on the $93K neckline and $95K support
veteran trader Peter Brandt sounded the alarm on bitcoin's [BTC] price movement, suggesting that a head-and-shoulders pattern could lead to a drop to $BTC Mr. Brandt acknowledged the uncertainty of the model, noting that it could fail, continue an upward movement, or morph into something else. However, he emphasized that as it stands, the chart indicates a potential downturn, and traders should keep a close eye on it and factor it into their market strategies.
In his latest X-post, the trader focused on the head-and-shoulders pattern that can form on the bitcoin price chart
This pattern is often a bearish reversal signal, suggesting that #BTC could fall to $78,000 if the neckline, indicated by the black horizontal line, is broken.
Brandt said that this target is support
the meantime, the ATR (Average True Range) indicates increased volatility, and the downtrend on the #ADX indicates weakening bullish momentum. Thus, the $93,000 to $95,000 level remains critical for further developments. Failure to hold this support may confirm Brandt's bearish outlook.
Despite the prevalence of bearish signals, bulls could argue that bitcoin's trajectory is holding above the $93,000-$95,000 support level.
A decisive break above the $95K area would invalidate the head-and-shoulders pattern and suggest a possible rally to $98K or higher.
The eight-day moving average could act as immediate resistance, and its crossover could re-enforce the bullish momentum. However, if the volume remains low, the bullish sentiment may weaken. Also, the ADX is weakening, which makes trend strength and continuation of the uptrend unlikely.
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