TLDR
- Peter Brandt warns Bitcoin bulls to reclaim $117,570 to avoid double top.
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A massive whale sell-off has caused Bitcoin’s price to drop by $4,000.
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Bitcoin price dropped below support at $112,210 amid whale liquidation.
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Brandt remains neutral on Bitcoin, watching for key breakout at $117,570.
Peter Brandt has raised concerns over Bitcoin’s recent price movements. According to Brandt, the leading cryptocurrency faces a potential “double top” pattern unless Bitcoin bulls manage to reclaim a key level of $117,570. This level is considered critical for confirming whether the current market trend will continue upward or reverse.
Bitcoin’s price has been fluctuating around $111,794, after dipping to an intraday low of $100,381. Brandt’s analysis suggests that a failure to break through the $117,570 mark could signal the formation of a double top, indicating a possible market downturn.
Whale Sell-off Causes Significant Price Drop
The price drop in Bitcoin was partly triggered by a massive sell-off from a Bitcoin whale. Over the weekend, the whale liquidated 24,000 BTC, worth over $2.7 billion, which led to a sharp drop in Bitcoin’s value. This sell-off resulted in a $4,000 price decline in a matter of minutes.
Blockstream CEO Adam Back commented on the situation, stating that the whale’s actions were somewhat clumsy, as market participants with such large holdings typically use more strategic methods. Despite Back’s comments, Brandt emphasized that this sell-off should not be ignored, as it reflects the supply pressure in the market.
Peter Brandt Warns of Double Top Risk for Bitcoin
Peter Brandt’s analysis of Bitcoin’s price chart suggests that the cryptocurrency is currently in a downward-sloping channel that formed in mid-August. According to Brandt, if Bitcoin fails to break out above the $117,570 level, it could confirm the double top pattern.
This pattern occurs when an asset makes two peaks at similar price levels, signaling a potential reversal in market sentiment.
- Source: X
Bitcoin bulls need to act quickly to reclaim this critical price level to avoid the risk of a double top formation. A failure to do so could result in a further decline in Bitcoin’s price, particularly as the market has already seen some volatility due to the whale’s liquidation event.
Neutral Outlook for Bitcoin: Brandt’s Caution
Despite the recent developments, Peter Brandt stated that he is neither bearish nor bullish on Bitcoin at the moment. He clarified that his analysis is based on the technical patterns observed in Bitcoin’s price movements and not on any particular bias. Brandt as a result emphasized the need for clarity in understanding market trends and cautioned against hasty conclusions.
Many in the crypto community have expressed their views on the market’s direction, but Brandt’s neutral stance underscores the uncertainty and volatility that continues to characterize Bitcoin’s price movements. With the $117,570 level being crucial for Bitcoin’s short-term prospects, investors and traders alike will be closely monitoring how the price behaves over the coming days.
