Experienced trader Peter Brandt, It created a great deal of interest and debate among investors by highlighting a remarkable pattern appearing on the Bitcoin chart.
Brandt points to a slowly emerging head-and-shoulders pattern along with a rising trend line observed on the four-hour Bitcoin price chart. shared. This post was prompted by an X/Twitter user asking, “Is this a head and shoulders formation?” He attracted more attention with his question, and Brandt replied, “It’s starting to take shape like this.”
Bitcoin $BTC pic.twitter.com/uUsqb8I5PR
— Peter Brandt (@PeterLBrandt) March 22, 2024
NEWS CONTINUES BELOW
The head and shoulders pattern is an indicator commonly used in technical analysis that predicts a trend reversal. The formation is defined by a neckline connecting the low points of the shoulders. When the price of the asset falls below the support located at the neckline, this is considered a confirmation of the pattern. This indicates that the previous uptrend has exhausted itself and a new downtrend may emerge.
Confirmation of this pattern could be a sign that Bitcoin’s price correction following its recent uptrend may be imminent. This can offer a strategic entry point for investors looking to buy at lower prices.
In conclusion, the head and shoulders pattern pointed out by Peter Brandt is an important indicator to consider in the Bitcoin market. However, it is important to conduct careful analysis and consider other market factors before making any investment decisions. It should not be forgotten that technical analysis does not always give definitive results. Due to the complexity and volatility of markets, it is not possible to guarantee that any indicator or model will be absolutely accurate. Investors should evaluate such signals by taking other market factors into account.
What Do Bitcoin Options Say?
Bitcoin has come to the fore with its recent decline. It has fallen 13% from its all-time high of $73,750. This decline was recorded as one of the most notable declines of 2024. As of the time this article was written, the value of Bitcoin dropped to $ 64,318 and decreased by 6.68% on a weekly basis. However, Bitcoin’s decline appears to contradict the uptrend in stock markets this week.
Investors are more bullish on the possibility of the Federal Reserve lowering interest rates this year. This situation draws attention with the rise in traditional financial markets, inversely proportional to the loss of value of Bitcoin.
On the other hand, those who do not want to invest in US stock funds through cryptocurrencies seem to be taking precautions against possible long-term declines in Bitcoin. According to reports from Bloomberg, it is observed that put options have outpaced call options on major crypto options exchanges such as Deribit, which will expire on March 29. This indicates that investors are prepared for a possible decline in the value of Bitcoin.
The strike prices (put) of put options, which are traded extensively on the Deribit platform, vary between 45 thousand and 50 thousand dollars. This shows that investors have a certain expectation that the current value of Bitcoin will fall below these levels.
You can access current market movements here.
