U.Today Article: Renowned Trader Peter Brandt Highlights Notable Pattern on Bitcoin’s Chart

© Reuters – Seasoned Market Analyst Peter Brandt Highlights Notable Pattern on Bitcoin’s Graph

U.Today – Peter Brandt, an experienced trader, called attention to an interesting development on Bitcoin’s price chart with a recent tweet. He pointed out a pattern of ascending peaks in BTC’s value, which diverges from RSI readings.

To put it in layman’s terms, a divergence is a conflict between the prevailing market direction and the indicators—typically momentum-based—that are used to measure it. Such divergence often implies a potential shift in the market’s trajectory.

While highlighting his preference for price action over reliance on indicators, Brandt poses a question to his audience regarding their interpretation of these findings.

In response, a cryptocurrency analyst known as “Cheds” suggested that Brandt might be identifying a concealed bullish divergence. This scenario occurs when the RSI demonstrates lower troughs while the asset’s price charts higher troughs, suggesting that while the RSI resets, the asset retains its strength, potentially signaling a continuation of the uptrend.

Should this analysis hold true, one might anticipate a sustained upward trend for Bitcoin’s price, though the future remains uncertain.

Volatility in Bitcoin’s Value

The digital currency market saw a decline in value on Thursday, with Bitcoin’s price reverting to the vicinity of $40,000. Bitcoin was traded at $41,167.14, seeing a 3.84% decrease, as per the figures from CoinMarketCap. Previously, it touched down to $40,601.37, marking its lowest point since Dec. 18.

Alongside Bitcoin, the broader crypto market witnessed a downturn. Market observers surmise that the market is in a correction phase subsequent to the recent ETF launches, characterized by the selling activity of short-term traders and key Bitcoin investors in a risk-off climate.

Following the ETF news, Bitcoin’s price has taken a hit of approximately 16% from its high of nearly $49,000 registered in the past week.

Data from Santiment suggests that the negative market sentiment and subsequent sales by less experienced traders might open up opportunities for a market turnaround, initiated by savvy investors who are using the price dip as a chance to accumulate more.

Original content can be found at U.Today