PakGazette – The cryptocurrency market has been all over the place in the last 24 hours, with liquidations exceeding $700 million. (BTC) led the decline, falling to a two-month low of $89,256 before recovering above $94,000. But even with this partial recovery, the broader market was still under pressure, with smaller altcoins hit the hardest.
Bitcoin’s daily chart showed a high wave doji pattern, which is a candlestick formation that highlights indecision and significant volatility in the market. This pattern coincided with a low range sweep and a recapture below, suggesting a change in bias from bearish to bullish.
Veteran trader Peter Brandt emphasized the importance of this development in the context of Bitcoin’s current price dynamics.
Before yesterday’s drop and recovery, Brandt had been keeping an eye on the formation of a head and shoulders pattern on the Bitcoin chart.
What’s next for Bitcoin (BTC)?
From his perspective, there were three possible outcomes. The first was a bearish continuation, which could see the pattern complete and Bitcoin trend towards $76,000. The second was a bear trap, where a brief drop would make the bears more confident, but then the price would rebound strongly, causing a brief contraction. The third was less certain: the current structure could shift towards a broader pattern, which is harder to predict, and would not be clearly bullish or bearish.
But yesterday’s events have already begun to change this. The bulls broke through critical levels again quite quickly, suggesting that the first breakout did not actually occur. So, it looks like we may have been fooled by a bear trap, or maybe it was just a warm-up for something else.
Traders are closely following Bitcoin right now, watching to see if it can break through the $97,500 mark. Doing so could lay the groundwork for a new wave of growth. If BTC gains momentum again, it could give the entire cryptocurrency market a boost.
