There are a lot of bitcoin predictions floating around the crypto space. However, pinpointing the exact level that the digital asset will fall has been one of the most difficult tasks. Nevertheless, analysis can often try to predict what will happen next for digital assets due to market moves and one of those analyzes is put forward by Peter Brandt, a notable name in the crypto space.
Brandt calls for downtrend brace
In a recent tweet, the market analyst and trader posted a chart of what he believed was ahead for the price of bitcoin. By that time, the digital asset was still trading below $20,000 and with the market momentum declining, it was not expected that there would be much recovery and Brandt’s chart said as much.
He identified what is known as a pennant, a series of market movements that indicated that the price of a digital asset had peaked at one point and that a major change would occur. This time around, the analyst further added that since the identified movement trend looks like a flag, it is most likely a flag.
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The thing about pennant formations is that they are famous for before a drop in price. The last time an ensign was identified, as shown in the chart, was back in June. This was before the market crash that touched the price of bitcoin to $17,600. So if Brandt’s analysis is correct, the price of bitcoin can be expected to drop again to this point.
— Peter Brandt (@PeterLBrandt) 5 July 2022
But is bitcoin listening?
One thing about bitcoin’s movement in the market is that it does not follow any logic or reason at all. The volatility associated with the cryptocurrency is one of its best and worst selling points at the same time, making it impossible for anyone to pinpoint its next move with precision.
BTC loses momentum | Source: BTCUSD on TradingView.com
Peter Brandt’s analysis was posted when the digital asset was trading at $19,000, but since then, the price of bitcoin has risen instead of down as expected from the analysis. This apparent deviation from the expected indicates that the formation of a pennant could now always mean impending doom for the digital asset.
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However, as the weekend draws to a close, bitcoin has lost almost half of the value added in the previous day. This reversal of a recovery trend suggests that the consequences of Pennant formation could not have been averted, but simply delayed.
If this is true, then the market could see a 20% drop in the price of bitcoin in the coming days.
Featured image from Pixabay, charts from TradingView.com
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