Brenda Mary
Veteran trader Peter Brandt warns that a persistent bearish Bitcoin trend of lower highs and lower lows has overshadowed Bitcoin’s recent rebound despite positive events.
Brandt recently shared his analysis of Bitcoin’s current market trends on X, expressing caution despite the cryptocurrency’s recent price surge. He noted that Bitcoin’s pattern of lower highs and lower lows continues, overshadowing positive developments like the Bitcoin halving and the approval of Bitcoin ETFs.
While I am impressed by the current bounce in Bitcoin $BTC it should be noted that the sequence of lower highs and lower lows continues despite the halving, despite the ETf, despite the hype pic.twitter.com/V5M6FFaMpJ
— Peter Brandt (@PeterLBrandt) July 17, 2024
Bitcoin’s Current Bounce and Technical Analysis
Bitcoin has experienced a recent bounce, with prices rising over 10% weekly after hitting a low. Despite this upward movement, Brandt emphasizes that the sequence of lower highs and lower lows remains intact.
This pattern, characterized by each peak and trough being lower than the previous ones, signals a bearish trend. However, the current price is above the 8-day and 18-day moving averages, indicating short-term bullish sentiment, but the long-term trend suggests caution.
The current Relative Strength Index (RSI) is around 59.41, which is below the overbought threshold of 70, suggesting that there is still some room for upward movement without hitting overbought conditions.
Impact of Bitcoin Halving and ETFs
Brandt points out the significance of events such as the halving, which are expected to impact Bitcoin’s market positively but have not. The Bitcoin halving, an event that reduces the rate at which new BTC is created, is one of the most anticipated events in the crypto industry.
It aims to reduce miners’ rewards, historically leading to significant price increases. Market watchers like Thomas Lee and institutions like Standard Chartered previously projected Bitcoin to potentially reach $150,000 following the halving.
Additionally, the approval of Bitcoin ETFs has attracted institutional investors, enhancing market liquidity and stability. ETFs serve as a regulatory endorsement, boosting investor confidence and reducing long-term volatility.
Market Sentiment and Media Hype
Market sentiment and media hype also play crucial roles in cryptocurrency price movements. Positive sentiment can drive prices up, while negative sentiment can lead to declines. Recent data from Santiment highlights a rise in Bitcoin whale and shark wallets, indicating growing interest despite market dips.
Earlier this month, reports confirmed an increase of 261 wallets holding at least 10 BTC, pushing the total to 152,000, the highest since May 2021.
However, despite this positive sentiment, Brandt questions Bitcoin’s future. He points out that the ongoing pattern of lower highs and lower lows may hinder sustained growth. This bearish outlook contrasts Brandt’s earlier analysis on Bitcoin, in which he forecasted a spike to $92,579 amid a bear trap.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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