After a significant rally in the last two days, the asset’s price has retreated below the daily resistance level of $25k.
In the last couple of days, Bitcoin has enjoyed a significant price rally to form new highs for the year. However, the price faced rejection from the $26k price level yesterday, retreating below $25k at the time of writing.
It is worth noting that the latest price rally was largely fueled by Bitcoin buying pressure from Binance. Recall that, as reported on Monday, Binance had revealed plans to convert its $1 billion industry recovery fund to Bitcoin, BNB, and Ethereum in the wake of recent uncertainty surrounding dollar-pegged stablecoins.
Veteran classical chartist Peter Brandt reacting to the price action in a tweet yesterday, disclosed that he was “not surprised” by the price retreat.
Not surprised 26,000 rejected advance pic.twitter.com/nUQkNAtI1t
— Peter Brandt (@PeterLBrandt) March 14, 2023
It is worth noting that hours before, the Veteran trader had revealed that Bitcoin was forming an inverted symmetric triangle on the daily price chart. While prominent crypto analyst Ali Martinez indicated it was a bullish continuation, Brandt has an entirely different view.
— Ali (@ali_charts) March 14, 2023
Citing Edwards and Magee’s Technical Analysis of Stock Trends, Brandt, in a TradingView idea published hours ago, asserts that expanding triangles are typically bearish. While the analyst does not believe that the leading asset is about to enter a bear market, he says he expects it to trade in a broad range in the short term.
For additional context, in an analysis shared on Monday, the latest rejection coincides with a daily resistance level identified by Brandt as the neckline for a potential inverted head and shoulders price bottom formation. It is around the $25k price point, which Bloomberg intelligence analyst Mike McGlone has said Bitcoin needs to hold above to signal a sustainable price rally.
At press time, the 1-hour price chart reveals that the asset is forming a potential tight bear flag pattern after retreating below the daily resistance. It is a continuation pattern that signals a potential move back to the lows of the expanding triangle at least.