Bitcoin Head and Shoulders Invalidated? Brandt Calls Sweep of the Lows “Significant”
Veteran commodities trader Peter Brandt hints that the recent Bitcoin bounce has notable implications.
Over the past 24 hours, the market tested the faith of many Bitcoin holders as BTC price saw a sharp decline from near $96,000 to below the psychologically important $90,000 level. The decline, however, was short-lived as the asset bounced back even faster.
The price action likely has notable implications, as one veteran trader has recently hinted.
Bitcoin’s “Significant” Bounce
Veteran commodities trader Peter Brandt has hinted that Bitcoin’s recent bounce has notable implications. In a Tuesday, January 14 response to a “Cheds Trading” X post highlighting the asset’s sweep of the lows below support and the recapture of the level, Brandt asserted that the price action was “significant.”
Significant indeed https://t.co/2RvpC0sFJp
— Peter Brandt (@PeterLBrandt) January 14, 2025
The comment comes as he has often touted a head-and-shoulders pattern on the asset’s daily candle chart in recent weeks. On Sunday, January 12, Brandt asserted that the pattern offered three possible outcomes.
These outcomes included fulfilling the pattern with a drop to $75,000 or failing and ending in a bear trap which would complete the “hump slump,” a correction pattern Brandt has stressed Bitcoin often repeats in parabolic runs. At the same time, he noted that the asset’s price could form an entirely different, bigger chart pattern.
Following Monday’s price action, the veteran trader may now be leaning more than ever towards the second possibility. To be sure, bears have taken significant losses with the market’s recent bounce, as CoinGlass data shows that shorts have lost a staggering $133 million in the past 12 hours compared to only about $16 million for longs.
$116K in View for Bitcoin?
On Monday, January 13, Brandt suggested that Bitcoin’s price could go two ways depending on how it reacted at the $90,000 support level, with a bull case of about $116,500 and a bear case of around $74,000.
Knife fight at the OK Corral $BTC
Will Team Green or Team Red win the battle of the gashes pic.twitter.com/CbtKKlPED3— Peter Brandt (@PeterLBrandt) January 13, 2025
At the time of writing, Bitcoin is trading just below the $95,000 price point following yesterday’s bounce, representing a nearly 2% gain over the past 24 hours.
