Peter Brandt warns that despite Bitcoin’s recent surge, it has not altered its long-term bearish pattern. He indicates that true bullish momentum will only occur if Bitcoin closes above $71,000. Resistance levels at $70,602 and $73,808 remain crucial barriers. Analysts suggest a cooling-off period may precede any significant upward trends. The overall medium-term structure remains bearish, with caution advised in the current market climate.

Veteran trader Peter Brandt has recently expressed caution regarding the recent rally of Bitcoin, indicating that it has not reversed the established longer-term bearish structural trend characterized by lower highs and lower lows. Brandt emphasizes that for Bitcoin to demonstrate a meaningful bullish trend, it must surpass the $71,000 threshold and achieve a new all-time high. Despite the temporary price surge, Bitcoin remains ensnared in a persistent downtrend that has lasted over seven months. This ongoing pattern signifies a continued bearish sentiment in the market. Brandt identifies two critical resistance levels on the weekly chart that have impeded Bitcoin’s price movement: the first, located around $70,602, and the second at $73,808, which marks the previous all-time high. Without a break through these resistance levels, it is anticipated that Bitcoin will remain in a phase of consolidation. Brandt underscores that while the recent activity offers a glimmer of hope, it has not disrupted the sequence of lower highs dominating Bitcoin’s price actions for several months. He insists that genuine momentum reversal will only materialize if Bitcoin surpasses $71,000, thereby affirming the achievement of a new all-time high. Anything less would merely constitute another fluctuation within the prevailing bearish framework. In technical terms, the 8-week simple moving average, currently around $60,526, serves as a support level for Bitcoin’s price, which has been oscillating nearby, highlighting a lack of definitive direction in the market. Additionally, the Average True Range (ATR) indicates moderate volatility, suggesting that while significant price movements are still feasible, the market has yet to reach any extreme volatility levels. In light of Brandt’s assessment, chart analyst Willy Woo concurred that the medium-term outlook for Bitcoin remains bearish. Nevertheless, Woo conveyed a more optimistic perspective regarding a gradual shift towards bullish sentiment. He forecasted a necessary cooling-off period over the next one to three weeks before any considerable bullish movement could be expected. Within this context, Woo noted that it is improbable for October to witness a strong upward rally; instead, he anticipates a period of sideways movement before potential bullish trends might manifest towards the end of the year. Furthermore, Brandt pointed out that widespread adoption of the “laser eyes” trend, which signifies bullish sentiment among crypto enthusiasts, often serves as a contrary indicator, hinting at possible bearish market trends. In a separate analysis, veteran analyst Benjamin Cowen also indicated potential declines for Bitcoin in October, diverging from the prevailing optimistic narratives within the community. Cowen referenced historical trends to provide a balanced perspective on Bitcoin’s potential price trajectory, noting that past performances suggest a decline could follow initial surges post any significant monetary policy changes. At the time of reporting, Bitcoin has experienced three consecutive days of declines from the recent peak of $66,508 observed on September 28, recently showing recovery to trade around $61,395.

The analysis of Bitcoin’s recent price behavior is critical in understanding the underlying trends and market sentiments that drive cryptocurrency prices. Veteran traders and analysts frequently employ technical indicators such as moving averages and resistance levels to evaluate market conditions. This analysis specifically highlights the potential for bullish reversal, contingent upon breaking through established resistance levels. The commentary from experienced traders serves to provide insight and guidance amid a rapidly changing cryptocurrency landscape, helping investors navigate potential risks and opportunities.

In summary, while the recent rally of Bitcoin offers a temporary reprieve from a persistent downtrend, experts such as Peter Brandt and Willy Woo contend that the overall medium-term sentiment remains bearish unless critical resistance levels are exceeded. The potential for a long-term bullish movement hinges on breaking past established barriers, indicating that caution should prevail in the current market environment. Investors are encouraged to remain vigilant, exercising due diligence to avoid pitfalls in a volatile market.

Original Source: thecryptobasic.com

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