Legendary Trader Warns of Potential Bitcoin Collapse

article image

Alex Dovbnya

Legendary trader Peter Brandt recently issued stark warning to Bitcoin investors

Peter Brandt, a prominent trader and respected figure in the crypto world, recently sounded the alarm about a potential Bitcoin (BTC) collapse.

In a recent tweet, Brandt highlighted a “head and shoulders” pattern on Bitcoin’s price chart, a signal that, if completed, could spell trouble for the leading cryptocurrency.

At press time, Bitcoin’s price stands at $27,434.88, according to data from CoinGecko, with a 24-hour trading volume of over $22 billion.

The “head and shoulders” pattern is a technical analysis charting pattern that signals a potential reversal in price trends. It consists of a peak (shoulder), followed by a higher peak (head) and then another lower peak (shoulder).

The completion of this pattern, which Brandt suggests Bitcoin is approaching, often indicates that a security’s price is set to fall, implying that Bitcoin could be on the verge of a significant downturn.

Interestingly, Bitcoin’s price saw a spike after the latest CPI report, suggesting an easing of inflation rates. The flagship cryptocurrency reached an intraday high of $28,883 on May 10, only to erase some of its gains later in the day.

However, Bitcoin briefly fell below $27,000 amid concerns about market liquidity. Bloomberg attributed the drop to declining participation from institutional market makers.

Source: https://u.today/legendary-trader-warns-of-potential-bitcoin-collapse