Veteran traders who called the 2018 crash said not to be bearish on Bitcoin for now

Bitcoin (Bitcoin) May have formed the classic “head and shoulders” pattern, but the bulls may still win, said senior trader Peter Brandt.

in a tweet On October 27th, Brandt, famous Because of his accuracy in BTC price prediction, he refused to bearish Bitcoin.

Brandt: Bitcoin may face “greater congestion”

although Close to 58,000 USD In the new round of fiasco for leveraged traders on Wednesday, analysts generally remained calm and even called for the return of highs to show strength, which should surprise many people.

For Brandt, there is no reason to reject Bitcoin with the support of current price movements.

He wrote: “Head and shoulders do not always lead to a bear market reaching its implicit target or higher.”

“This model may also fail (bullish) or evolve into greater congestion (exhaustion).”

The accompanying chart shows that the historical high of $67,100 last week was surrounded by two smaller peaks, forming the so-called “head and shoulders” pattern.

The BTC/USD chart shows a “head and shoulders” pattern.Source: Peter Brandt/Twitter

Traditionally, such events have ruled out long-term downsides of assets, which are exhausted and unsustainable after reaching a certain point.

In recent days, the idea that Bitcoin may fall into a long-term sideways arrangement has become a topic again. Cointelegraph writer Michaël van de Poppe predicted earlier that progress is slow Close to 90,000 USD, This may only appear early next year.

Everything is in plan

For those who are worried about a further decline in BTC/USD, lowering the financing interest rate-which is now almost “reset” after the leverage is exhausted-may alleviate fear.

related: Bitcoin price decline matches October 2017, but still predicts that BTC will “explode” before 2022

Binance has been a particularly worrying source this week, with a large number of upside bets creating an awkward setup that eventually fell apart during the fall.

The current spot price is approximately US$59,000, further making it possible for Bitcoin to reach its “worst-case” monthly closing price of US$63,000. Its source, analyst PlanB, Correct prediction The monthly closing prices in August and September were US$47,000 and US$43,000, respectively.

In contrast, November should be Much higher $98,000.