Bitcoin price could rise if this rare pattern works, says Peter Brandt
Renowned technical analyst Peter Brandt has identified a rare chart pattern that could potentially propel the price of Bitcoin significantly higher in the coming months. In a recent post, Brandt, who boasts a massive following of over 700,000 on social media, pointed out that Bitcoin has formed a bullish chart pattern known as the inverted right-angled broadening triangle.
The inverted right-angled broadening triangle, originally coined by Richard Schabacker in 1934, is a pattern that typically leads to a strong bullish breakout over time. This pattern is characterized by two descending trendlines, with the upper side formed by connecting the highest points in March, May, June, and July, and the lower side connecting the lowest levels in those months.
Brandt also highlighted the formation of a hammer candlestick pattern in Bitcoin’s chart, which is characterized by a long lower shadow and a small body. For the right-angled broadening triangle to play out successfully, Bitcoin will need to maintain its position above the lower side of the hammer. A breakdown below this point would invalidate the pattern and potentially lead to further downside.
In order for this pattern to succeed, Bitcoin will require a significant catalyst. Brandt suggests that a potential catalyst could come from the Federal Reserve, particularly in the form of interest rate cuts and quantitative easing, similar to the actions taken in response to the Covid-19 pandemic in March 2020.
There are indications that a recession may be looming, as evidenced by the rising unemployment rate over the past four months. Historically, a recession has followed every time this pattern has formed in the past 75 years, making the current economic climate a cause for concern.
Overall, Brandt’s analysis suggests that Bitcoin’s price could experience a strong bullish breakout if the rare pattern he has identified plays out as expected. Investors and traders will be closely monitoring the market in the coming months to see if Bitcoin can maintain its position above the key support levels and capitalize on any potential catalysts that may emerge.