Disclaimer: The opinions expressed by our writers are their own and do not represent the opinions of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not responsible for any financial losses incurred while trading cryptocurrencies. Do your own research by contacting financial experts before making any investment decisions. We believe all content to be accurate as of the date of publication, but some offers mentioned may no longer be available.
The cryptocurrency market has been all over the place in the past 24 hours, with liquidations exceeding $700 million. Bitcoin (BTC) It led the decline, falling to a two-month low of $89,256 before bouncing back above $94,000. But even with this partial recovery, the broader market was still under pressure, with smaller altcoins taking the biggest hit.
Bitcoin's daily chart showed a high-wave doji pattern, a candlestick formation that highlights indecision and high volatility in the market. This pattern coincided with a sweep of the lower range and its subsequent recovery, indicating a shift in bias from bearish to bullish.
Related to
Veteran trader Peter Brandt emphasized the importance of this development in the context of current Bitcoin price dynamics.
Before yesterday's decline and rebound, Brandt was watching the head and shoulders pattern forming on the Bitcoin chart.
What's next for Bitcoin (BTC)?
In his view, there were three possible outcomes. The first was a downward continuation, which could see the pattern complete and Bitcoin It's headed toward $76,000. The second was a bear trap, where a short decline would make the bears more confident, but the price would then bounce back strongly, causing a short squeeze. The third option was less certain: the current structure might change into a broader pattern, which is difficult to predict, and will not be clearly bullish or bearish.
Related to
But yesterday's events have already begun to change this situation. Bulls returned above critical levels very quickly, which makes one think that the first collapse did not actually happen. So, it looks like we were fooled by a bear trap, or maybe it was just a warm-up for something else.
Traders are watching Bitcoin closely at the moment, watching to see if it can break above the $97,500 level. If that happens, it could pave the way for a new wave of growth. if Bitcoin If it regains its strength again, it could give the entire cryptocurrency market a boost.
Source link