As the price of Bitcoin wobbles toward $10,000, traders are looking at the short-term possibilities ahead.
Veteran trader Peter Brandt, known for calling the start of the last bear market, says BTC is in a descending triangle and likely to break to the downside.
Bitcoin meets the definition of a descending triangle. Don’t let newbie chartists tell you different. Right-angled triangles imply (but do not demand) a resolution thru the horizontal boundary. $BTC pic.twitter.com/DIW1BpMSCV
— Peter Brandt (@PeterLBrandt) September 7, 2019
When asked how the analysis meshes with Brandt’s assertion that Bitcoin is in the early stages of another parabolic bull run, Brandt says he remains bullish in the long term.
“Different time frames. As usual, we need to react and not get too far out predicting. I still have a sizable position bet on the bullish outcome.
In full disclosure, I must inform you that I am long BTC as a position trader. Yet, as a swing trader I must respect classical charting principles…
There have been numerous occasions over the years when prices blew out of the upside of a descending triangle. When this happens it is referred to as a descending triangle failure.”
Right now, Bitcoin is down 0.96% at $10,292, according to COIN360.
Ethereum is up 0.45% at $181.10, XRP is down 1.21% at $0.2596 and Litecoin is up 0.27% at $69.78.
NewsBTC analyst Aayush Jindal says $10,200 is now a key support level for BTC.
“An immediate support area is near the $10,200 level. If there is a downside break below the $10,200 support area,