Despite a recent price surge, veteran trader Peter Brandt warns that Bitcoin may still be locked in a bearish trend. In a social media post on July 17, 2024, Brandt cautioned investors to look beyond the immediate bounce and consider the bigger picture.
Brandt highlights a persistent technical pattern of lower highs and lower lows, suggesting a broader downward trend. This casts a shadow over positive developments like the recent Bitcoin halving and the approval of Bitcoin ETFs, which were widely expected to boost the cryptocurrency’s price.
Bitcoin’s Recent Rally: A Short-Term blip?
While Bitcoin prices have climbed over 10% in the past week, Brandt emphasizes the significance of the lower highs and lower lows. This technical indicator suggests a potential for a pullback despite the current upswing.
Short-term sentiment appears bullish, with Bitcoin trading above its 8-day and 18-day moving averages. However, the long-term trend remains a concern for some analysts like Brandt.
The Relative Strength Index (RSI) currently sits at 59.41, indicating room for further growth before reaching overbought territory. However, this doesn’t necessarily translate to a sustained bullish trend.
Halving and ETFs: Unfulfilled Promises?
Brandt specifically mentions the Bitcoin halving, an event designed to slow down the creation of new Bitcoins and historically trigger price increases. Despite industry experts predicting a significant price surge following the halving, Bitcoin’s price hasn’t lived up to those expectations.
Similarly, the long-awaited approval of Bitcoin ETFs, which allow traditional investors to gain exposure to Bitcoin through regulated investment vehicles, hasn’t delivered the anticipated market boost. While ETFs were expected to attract institutional investment and enhance stability, their impact seems muted so far.
Investor Sentiment and Media Hype: A Double-Edged Sword
Market sentiment and media coverage significantly influence cryptocurrency prices. Positive news and investor confidence can drive prices upwards, while negativity can trigger sell-offs.
Recent data shows an increase in large Bitcoin wallets held by whales and sharks, suggesting continued investor interest despite market fluctuations. The number of wallets holding at least 10 Bitcoins recently reached a 15-month high, highlighting potential buying pressure.
Also Read: Bitcoin Up 11% In A Week: Is A Bull Run Coming? Altcoins Soar Pointing To Altcoin Season
Brandt’s Cautious Outlook
Despite these positive signs, Brandt remains cautious about Bitcoin’s future trajectory. The prevailing downtrend pattern raises concerns about the sustainability of the current rally. This cautious outlook stands in contrast to Brandt’s earlier prediction of a Bitcoin price surge to $92,579, suggesting a shift in his analysis.
Only time will tell whether Bitcoin can break free from the bearish trend or succumb to its pressure. Investors are advised to conduct thorough research and consider all available information before making investment decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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