PK Press Club – The cryptocurrency market has been all over the place over the past 24 hours, with liquidations exceeding $700 million. (BTC) led the decline, falling to a two-month low of $89,256 before rebounding above $94,000. But even with this partial recovery, the market as a whole was still under pressure, with smaller altcoins being hit the hardest.
Bitcoin’s daily chart shows a high wave doji pattern, which is a candlestick formation that highlights indecision and significant volatility in the market. This trend coincided with a sweep of the bottom of the range and a recovery thereafter, suggesting a shift in bias from bearish to bullish.
Veteran trader Peter Brandt highlighted the importance of this development in the context of Bitcoin’s current price dynamics.
Before yesterday’s fall and rally, Brandt was monitoring the head and shoulders pattern forming on Bitcoin’s chart.
What’s next for Bitcoin (BTC)?
From his perspective, there were three possible outcomes. The first was a bearish continuation, which could see the trend end and Bitcoin trend towards $76,000. The second was a bear trap, in which a brief decline would make bears more confident, but the price would then rebound sharply, causing a short squeeze. The third was less certain: the current structure could evolve into a broader trend, more difficult to predict, and it would be neither clearly bullish nor bearish.
But yesterday’s events have already started to change the situation. The bulls returned above critical levels fairly quickly, suggesting that the first breakdown did not actually occur. So it looks like we were fooled by a bear trap, or maybe it was just a warm-up for something else.
Traders are watching Bitcoin closely at the moment, looking to see if it can surpass the $97,500 mark. If so, it could pave the way for another growth spurt. If BTC regains strength, it could provide a boost to the entire cryptocurrency market.
