Crypto Veteran Peter Brandt Cautions: Bitcoin Rally at Risk Below $107,000
Table of contents
The Expanding Triangle and Critical Support
Brandt's caution stems from Bitcoin's recent price action, specifically its breakout from an "expanding triangle" pattern. While breakouts from such formations often signal significant moves, Brandt highlights that this particular pattern has a historically higher propensity for failure, suggesting that the current breakout could potentially be a false one.
The crucial level to watch, according to Brandt, is the $107,000 mark. Although Bitcoin has recently managed to flip the $108,100 level into support, establishing it as a temporary floor, the $107,000 price point remains the definitive test for the rally's continuation. Its ability to hold above this psychological and technical barrier will be paramount.
Potential Trajectories: Upside or Reversal
Should Bitcoin successfully defend the $107,000 support, Brandt's analysis suggests potential upside targets. He foresees the cryptocurrency potentially advancing towards $120,958 and, subsequently, $134,886, indicating a healthy continuation of the bull market.
However, the inverse scenario presents a significant risk. A decisive breach and sustained decline below the $107,000 level could trigger a bearish reversal, unwinding recent gains and potentially leading to a more pronounced downturn. Traders and investors are advised to closely monitor Bitcoin's price action around this key support, as its behavior will likely dictate the market's trajectory in the immediate future.