Bitcoin Faces Bearish Pattern Despite Bullish Targets

Veteran trader Peter Brandt has maintained a bullish outlook on Bitcoin (BTC), setting short-term price targets of $120,958 and $134,886. However, he has also warned about the emergence of a bearish pattern on BTC’s price chart. Brandt identified an expanding inverted triangle, a pattern marked by widening price fluctuations and generally viewed as bearish due to its indication of market instability. This pattern, he noted, has a higher likelihood of leading to a breakdown compared to a horizontal pennant, which is typically seen as a bullish signal following an upward trend.

Brandt’s caution comes despite his overall optimism about Bitcoin. He advised investors to be wary of a decline below $107,000, as this could suggest a morphological change in the market. His advice aligns with his broader investment strategy, which includes recommending monthly investments with 80% allocated to SPY (the ETF that tracks the S&P 500 Index) and 20% to BTC.

Other analysts have also shared optimistic predictions for Bitcoin. CRYPTOWZRD, for instance, envisions a rally to $132,500 based on the potential formation of an inverse head-and-shoulders pattern. KALEO was even more bullish, predicting a price explosion to $500,000. These predictions are supported by indicators such as BTC’s predominantly negative exchange netflow over the last month, which signals a shift from centralized exchanges to self-custody methods, reducing immediate selling pressure.

However, technical indicators like the Relative Strength Index (RSI) suggest that Bitcoin’s rally might face short-term resistance. The RSI is close to the bearish zone of 70, indicating that the price has increased too rapidly over a short period and might be due for a pullback. This technical analysis underscores the need for caution, even as analysts remain optimistic about Bitcoin’s long-term prospects.