Veteran trader Peter Brandt is keen on higher prices for Bitcoin but issues a cautionary warning that things might go south.
On Thursday, July 10, he shared an update on Bitcoin’s price amid a rally to a new all-time high. The crypto firstborn finally garnered momentum to surpass its May peak price, hitting $112,045 yesterday before retracing slightly.
Bullish Inverted Triangle Breakout
Notably, Brandt revealed that he is bullish on Bitcoin. Recall that he had doubts about Bitcoin’s further uptrend earlier in the year but revised his skepticism when Bitcoin broke from a descending trendline at under $90,000 in April.
Today, he has reaffirmed his position that Bitcoin could continue to rise following a breakout from an expanding inverted triangle. Notably, the pattern has been forming on the daily timeframe for some time now, emerging from Bitcoin’s May 22 high of $111,965.
Since then, Bitcoin has retested both the resistance and support trendlines of the triangle until yesterday, when its 2% rise saw it break above the upper boundary. Brandt expects Bitcoin to sustain current trends, targeting a surge into uncharted territories.
An accompanying chart shows his first target from the breakout is a surge to $120,956, which is approximately 9% away from Bitcoin’s current price. Then, he predicts further upside to $134,886, 21.4% away from here.
Recall that Brandt had earlier projected Bitcoin’s price to reach a high of $150,000 this cycle. He highlighted that this could happen on or before August this year.
Caution Amid Ecstasy
While Brandt remains a bull, he warned that things could go south quickly for Bitcoin. Among his reasons for the caution is the high morphology of the expanding inverted pattern.
He emphasized that the triangle has a higher mortality rate than most other bullish patterns, such as the horizontal pennant. This suggests that while Bitcoin appears to be breaking out, the weak-willed momentum from the inverted triangle means that bears can still take over.
Further, he concluded that a drop to $107,000 would invalidate the bullish pattern and spark further downsides. Notably, the price mark is not far from Bitcoin’s current price, confirming that there is now a thin line between sustained momentum and a bearish reversal.
Remarkably, Brandt has always been cautious in his trading approach, viewing the market from different angles. In June, he predicted that Bitcoin could crash a staggering 75%, similar to its 2022 price action. Notably, this would take BTC’s price to around the late $20,000s.