Is Bitcoin about to enter a new upward phase? A chart pattern reminiscent of the one seen during the COVID-19 shock in March 2020 has emerged, leading to speculation that Bitcoin may be poised for a significant price increase.
With veteran trader Peter Brandt and other analysts observing this pattern, the crypto community is buzzing with anticipation.
Despite recent fluctuations, Bitcoin's strong rebound has raised hopes that it could surpass previous highs.
What does this mean for the future of Bitcoin?
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Formation of a Chart Pattern That Suggests Potential Price Surge
Veteran trader Peter Brandt, who boasts over 730,000 followers on X (formerly Twitter), reported on August 7, 2024, that Bitcoin (BTC) is currently forming a chart pattern that suggests a significant price increase may be on the horizon.
Brandt has identified the emergence of the "inverted right-angled broadening triangle" pattern in Bitcoin's current chart, noting, "Although the upper boundary line isn't horizontal, this pattern is strikingly similar to the current BTC chart."
Similar Pattern Observed During the COVID-19 Shock
The pattern Brandt highlights, also known as the "descending broadening wedge," has recently been noted by several traders and analysts besides Brandt, who have pointed out the formation of this pattern in Bitcoin's chart.
This pattern was also observed during the sharp decline in Bitcoin prices in March 2020, triggered by the COVID-19 shock.
After the steep drop during the COVID-19 crisis, Bitcoin experienced a significant price surge. This historical precedent suggests that a similar upward movement could occur in Bitcoin's future.
Bitcoin's price sharply declined to around $49,000 on August 5, but subsequently rebounded strongly, reaching approximately $61,000 at the time of writing. This recovery has fueled expectations for further increases.
While caution is still warranted regarding potential additional declines, if Bitcoin follows a similar trajectory to that seen during the COVID-19 shock, it could surpass its previous all-time highs and continue to rise further.
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Will Bitcoin Prices Rise? The Price Plunge Resembles the "2016 Halving Cycle"
Will Bitcoin prices surge again after the 2024 halving? Veteran trader Peter Brandt suggests a pattern similar to the 2016 cycle. Learn why this could signal a bottom and the start of a new bull market.
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