Bitcoin has just formed a rare megaphone pattern, says veteran trader Peter Bandt – here’s what it means
Veteran analyst and crypto trading legend Peter Brandt says Bitcoin (BTC) is currently printing a structure rarely seen in any market.
Brandt, who gained a legendary reputation in the crypto space after BTC collapsed in 2017, says that BTC is currently showing in a rare reversal pattern.
“This is called a megaphone or inverted symmetrical triangle.”
A megaphone pattern, which is also known as an extension formation, is a bullish technical structure that is usually seen after a strong downward movement. The asset traditionally breaks out after the third attempt to break the diagonal resistance.
Looking at Brandt’s chart, Bitcoin appears to have touched the diagonal twice so far, suggesting that BTC bulls need at least one more push for the king crypt to break out of the pattern.
Yesterday, Bitcoin surged to the 2023 high of $26,507 on the back of a massive short squeeze that triggered $320 million in liquidations as traders betting BTC would fall moved to cover their positions.
Bitcoin has since pulled back and is trading at $24,796 at the time of writing.
Brandt says the correction suggests that the megaphone structure is in play.
“Not surprised at 26,000 rejected advance.”
Following BTC’s latest retracement, fellow cryptoanalyst Michaël van de Poppe says BTC may find support at the $23,300 price level.
“Would have preferred a continued push towards $27,000 – $28,000 here for Bitcoin.
Not interested in buying this $25,000 retest.
Looking Deeper at $23,300 for Bounce Bet Longing for Bitcoin.”
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