The analysis comes as Bitcoin has struggled to hold onto its previous highs, falling 3.86% this week to around $66,000. The cryptocurrency has not hit a new high in 91 days, contributing to bearish sentiment among market participants.
Despite the short-term bearish outlook, Brandt also identifies a potential for growth. His chart includes a note about a “pump,” a term he has used before to describe the rebound phase in Bitcoin’s price cycles. Earlier this year, when Bitcoin was trading at $42,300, Brandt highlighted the pattern of a “Hump with a Slump then a Pump and a Dump,” noting that such movements are common in bull runs.
According to Brandt, this pattern separates inexperienced traders, who buy during the “pump” phase only to sell at a loss during the “dump,” from seasoned investors who understand the cyclical nature of crypto. He believes these patterns are essential to maintaining a healthy bullish trend.
Currently, Brandt sees a similar scenario, where Bitcoin could experience a significant dump, followed by a strong pump starting around the $60,000 level.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
