Bitcoin $70K Rally Hopes Dashed? Seasoned Trader Peter Brandt Sees No Clear Trend Yet

As Bitcoin continues in a ranging pattern, veteran trader Peter Brandt advises caution with the forming expanding triangle, urging for breakout confirmation before trading.

This time last week, the crypto market witnessed one of the greatest storms in recent history. Some crypto assets tanked by over 50% in a matter of hours as Bitcoin plunged to $49,000. Indeed, the calm has come, and most crypto assets have recovered from the massive losses.

Following the tumultuous events of the past week, the market has settled into a period of relative stability with mild volatility. Notably, since Friday, Bitcoin has maintained a price range between $61K and $59K, largely staying within this channel.

Meanwhile, ambitious market watchers continue to project that Bitcoin is gathering momentum to head for the $70K range. However, Peter Brandt, a chart trader with nearly 50 years of experience, does not share this sentiment.

No Trade Until Confirmed Breakout

In a recent post on X, the seasoned trader highlighted that Bitcoin is currently forming an inverted or expanding triangle pattern, a classic setup in technical analysis that often precedes significant market moves. 

Brandt emphasized that while this pattern takes shape, there hasn’t been a definitive breakout yet. Notably, the expected breakout pattern would signal a clear direction for Bitcoin’s price, either bearish or bullish.

Brandt explained that his trading strategy is rooted in classical charting principles, where he only enters trades once a pattern has been confirmed by a breakout. He stressed that he avoids making trades during periods of range-bound price action like the one Bitcoin is currently experiencing. This is because these periods lack a clear trend and can lead to false signals.

This cautious stance contrasts with the more bullish outlook held by some market enthusiasts, who believe Bitcoin is on the verge of a rally toward the $70K mark. According to Brandt, without a confirmed breakout from the current triangle pattern, any upward momentum remains speculative.

Opposing Perspectives of the Bitcoin Pattern 

However, not everyone agrees with Brandt’s assessment. Interestingly, a commenter on the analysis argued that Bitcoin is setting out for an aggressive move that could send its price to $100K. 

Meanwhile, Brandt has stated that some market observers often misconstrue the inverted triangle formation in Bitcoin’s price pattern as a bull flag. 

Another commenter pointed out that Brandt had previously argued that the current pattern could not be a bull flag due to its length. The commenter proposed an alternative scenario, suggesting that the pattern could be a descending channel instead. 

The analysis argued that a false breakdown of this channel, combined with the capitulation candle from last Monday, could target the top of the broken channel at $68,000 or higher.

At press time, Bitcoin hovers around $59,527, down by 1.35% over the past day.