Veteran trader warns Bitcoin's record may outlive him
Detailed summary
Bitcoin's latest decline has Peter Brandt questioning whether investors will see another record high in his lifetime. The veteran trader's warning depends on whether a bearish pat…
Bitcoin's latest decline has Peter Brandt questioning whether investors will see another record high in his lifetime. The veteran trader's warning depends on whether a bearish pattern taking shape on its weekly chart proves valid.
Brandt's chart showed Bitcoin at $62,830, down about 16% for the week. He marked a possible head-and-shoulders top, a formation traders watch for signs that a prolonged rise has ended.
On Nov. 14, Brandt asked, "Is this a legit H&S top in Bitcoin? If it is I can build a technical narrative that the ATH is in, not to be surpassed at least in my lifetime"
ATH means all-time high. Brandt did not declare that the pattern was confirmed, give a date for a recovery or attach a specific downside price target to that statement.
The chart divides Bitcoin's recent price history into three peaks. The middle peak is labeled the head, with a lower shoulder on either side and a support line beneath them.
Brandt placed the words "Look out below" near that lower line. His question was whether the structure amounts to a valid topping pattern, rather than a temporary setback within a longer advance.
For investors holding through the decline, his warning raises a different question from where Bitcoin might bounce next. It challenges whether the previous high will be recovered within the time they expect to hold their investment.
His wording leaves that outcome conditional. The post offers a chart-based scenario, not proof that Bitcoin has already made its final high.
Charles Schwab describes a head-and-shoulders formation as a central peak flanked by two smaller peaks. The line connecting the lows on either side of the head is called the neckline.
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