Bitcoin (BTC) may have a classic “head and shoulders” pattern, but bulls can still win, says vendor Peter Brand.
Brand: Bitcoin may face “greater traffic congestion”
For Brandt, there is little reason to dismiss Bitcoin behind the current price activity.
“Head and shoulder tops don’t always have to create a bear market with or without an underlying goal,” he wrote.
“This pattern may also fail (bullish) or lead to greater congestion (tedious).”
An accompanying chart showed last week’s all-time high of $ 67,100 surrounded by two low peaks, resulting in the so-called “head and shoulders” formation.
Traditionally, such events have prevented an extended downturn for a property, after reaching a certain point the uptrend is exhausted and not sustainable.
Meanwhile, the idea that Bitcoin could slide in an extended period of time has re-entered the narrative in recent days. Cointelegraph contributor Michaël van de Poppe has previously predicted a slowdown to around $ 90,000, which is likely to hit early next year.
Everything is going to be planned
For those who are concerned about further losses in BTC / USD, a reduction in funding rates – now without “resetting” after leverage leverage – can allay fears.
Related: Bitcoin prices fall BTC ‘explosion’ with October 2017 still forecast before 2022
A particular source of concern during Binance Week was the big reverse bet creating an unrealistic setup, which eventually sank.
Bybit Funding 55% APR and Binance 68% APR
Meanwhile Derbit 15% and FTX 7% …
Looks like we need to flush the monkeys again …
– Will Will Clement (@WClementeIII) October 26, 2021
The current spot price, around $ 59,000, further lines up Bitcoin which could potentially hit the “worst case scenario” at $ 63,000 monthly. Its source, analyst Planby, accurately predicted monthly closing in August and September – $ 47,000 and $ 43,000, respectively.
November, by contrast, should end at a much higher $ 98,000.