Veteran trader Peter Brandt, who has been trading for a long time, shared on Twitter that he saw a new Bitcoin pattern and warned BTC investors. He asked the community to guess the name of this pattern. In the chart shared by the analyst, the formation of a bearish pennant formation was observed. Cryptocoin. com we review Brandt’s analysis…
Bitcoin analysis by Peter Brandt: “Anyone want to guess?”
Peter Brandt shared a bearish chart for the leading cryptocurrency; most of the users could not answer the trader’s question correctly. But Twitter user Mind Trader suggested it was a bear pennant. Pennants often suggest that the trend will continue even if the chart breaks for a short time. It then reverses, as in the case of Brandt’s bearish pennant on the BTC chart.
BTC could break records, according to CryptoQuant
Confirmed by on-chain data provider CryptoQuant, a writer suggested that the flagship cryptocurrency could soon reach a new historic high. However, he also warns that traders should be careful now.
The author warns that the BTC price can be very volatile as there are not many Bitcoins on exchanges at the moment. Also, leverage on all exchanges increases as individual traders/whales trade against each other. This could indicate that the coin is close to its all-time high as Bitcoin’s daily RSI is still low. This suggests that the leading crypto will continue to rise, but may begin to correct after the new record (September-October) to find a new bottom.
While the price was falling, it turned out that “new coins” were sold
Meanwhile, BTC experienced a massive 20 percent drop on a weekly basis. While BTC’s decline suggests strong hands are selling, CryptoQuant has confirmed that this is not the case. According to their analysis, most of the sell-off last week came from billions of dollars in leverage liquidations, panic selling of younger cryptocurrencies, and macro risks.
Above-chain data shows no significant indication of whale exit liquidity that occurred in the 2018 bear market, where whales were selling in significant quantities. According to CryptoQuant’s UTXO Age Distribution metric, it is clear that the BTCs that poured into the market in the panic selling last week are young coins, especially 3 to 6 months old.