Brandt sees the asset forming a bullish chart pattern on higher time frames.
In a tweet yesterday, Veteran trader Peter Brandt shared a bullish outlook on Bitcoin in response to recent price action.
While Brandt cautions that no one knows what the market will do, and this is his “dunce-hat” prediction, the analyst sharing his weekly and monthly chart indicates that Bitcoin is potentially forming an inverted head and shoulders chart pattern. In the short term, the veteran trader sees a rally to about $25k before the asset’s price pulls back to retest the potential neckline to complete the pattern. Notably, Brandt places the neckline support at about $18,387.5.
In the long term, Brandt sees the asset rallying as high as 50k in 2023 and over 100k in 2024 after a drop below $34k. Per Brandt’s analysis, it is clear that the veteran believes that we have already seen the bottom of this cycle. It implies that we will no longer see a drop to $13k, which was the last clear bottom prediction by the analyst.
— Peter Brandt (@PeterLBrandt) January 15, 2023
It is worth noting that Brandt is not the only analyst to champion this bullish narrative. Prominent analyst and verified CryptoQuant author Maartunn also shared a similar analysis hours before Brandt. Describing Bitcoin’s latest price action as a range reclaim, Maartunn sets a target of $60k on the weekly chart, warning that a decisive break below the identified range will invalidate the setup. Notably, this range support is identical to Brandt’s neckline and hovers around the same price range.
This is a bullish-looking high timeframe chart ✅
— Maartunn (@JA_Maartun) January 15, 2023
It is worth noting that recent Glassnode analysis provides additional support to the idea that Bitcoin has already formed a price bottom in the current cycle. According to Glassnode data, Bitcoin spent 386 days below its 200-day moving average in the 2018-2019 bear cycle before rallying higher. Similarly, the asset spent 381 days below the respected market trend indicator in the latest cycle and has now broken above it, indicating a reversal.
#Bitcoin markets display a fascinating and bizarre level of consistency between cycles.
In the 2018-29 bear, $BTC traded below the 200DMA 🔵 for 386-days.
With last weeks rally, $BTC is back above the 200DMA, having spent 381-days trading below it.
— glassnode (@glassnode) January 15, 2023
In the past week, Bitcoin has staged a massive rally to the disbelief of many market participants. As reported on Saturday, a $4 billion purchase of open futures market orders triggered a massive short squeeze as the asset’s price rallied to $21k from below $20k in a few hours.
At press time, Bitcoin appears to be trading comfortably above the $21k price point at $21,149.92, up 2.21% in the last 24 hours and 22.74% in the past seven days.
Material Indicators warned on Saturday that whales are taking profit as retail traders jump in out of fear of missing out (FOMO). Warning that it could lead to a substantial price retracement, the platform cautions that the $18.5k price support must hold. Remarkably it is within range of Brandt’s neckline support and Maartunn’s range support.
— Material Indicators (@MI_Algos) January 14, 2023