There are a lot of bitcoin forecasts that are circulating around the crypto space. However, pinpointing the correct level that the digital asset will fall into has been one of the hardest tasks. Nevertheless, the analysis can often try to tell what will happen next for the digital asset due to market movements and one of those analyses has been put forward by Peter Brandt, a notable name in the crypto space.
Brandt Says Brace For Downtrend
In a recent tweet, the market analyst and trader had posted a chart that put forward what he believed was next for the price of bitcoin. By that point, the digital asset was still trading below $20,000 and with market momentum declining, it wasn’t expected that there would be much recovery and Brandt’s chart said as much.
He had identified what is referred to as a pennant, a series of market movements that shows where the digital asset price had peaked at a point and would be making a drastic change. This time around, the analyst put forward that since the movement trend identified looked like a pennant, it was most likely a pennant.
Related Reading | Decline In Bitcoin Miner Revenues Suggests More Sell-Offs May Follow
The thing about pennant formations is that they are famous for preceding a decline in price. The last time a pennant had been identified, as shown in the chart, had been back in June. It had preceded the market crash that saw bitcoin’s price touch as low as $17,600. So if Brandt’s analysis is right, then the price of bitcoin would be expected to fall to this point once more.
When it looks like a pennant and acts like a pennant it is often a pennant $BTC pic.twitter.com/O7RtnvFSp0
— Peter Brandt (@PeterLBrandt) July 5, 2022
But Is Bitcoin Listening?
One thing about the movement of bitcoin in the market is the fact that it does not exactly follow any logic or reason. The volatility that is associated with the cryptocurrency is one of its best and worst-selling points at the same time, which makes it impossible for anyone to accurately pinpoint its next move.
BTC loses momentum | Source: BTCUSD on TradingView.com
Peter Brandt’s analysis had been posted when the digital asset was trending at $19,000 but since then, the price of bitcoin has gone up instead of down as was expected from the analysis. This clear deviation from the expected shows that the formation of a pennant may now always mean impending doom for the digital asset.
Related Reading | SEC Still Against Spot-based Bitcoin ETFs. Is There A Light At The End Of The Tunnel?
However, as the weekend is drawing to a close, bitcoin has lost about half of the value it has added in the last day. This reversal of a recovery trend suggests that the results of the pennant formation may not have been averted but simply delayed.
If this is true, the market will likely see a 20% decline in the price of bitcoin in the coming day.
Featured image from Pixabay, charts from TradingView.com
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…
Source: https://www.newsbtc.com/news/bitcoin/bitcoin-drops-below-22000-is-peter-brandts-analysis-still-in-play/