- Peter Brandt is assessing whether Bitcoin has formed a double top, indicating a potential reversal from its upward trend.
- Brandt also mentions a “foot shot” signal, suggesting a possible short-term buying opportunity despite ongoing market volatility.
- Simultaneously, the German government continues selling seized Bitcoin, impacting the market’s recent downturn.
Veteran trader Peter Brandt is musing whether Bitcoin has “completed a double top” or not. A double top is a chart pattern used in technical analysis, which Brandt is an expert in.
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If the top is in, Brandt says we could be hitting US$44K (AU$65.3K) soon.
Traders use the double top pattern to predict the reversal of a prevailing upward trend. The pattern is characterised by the price of an asset reaching a high point, retracting to a support level, and then rising back to the high point again.
If the price fails to exceed the high point on the second rise and instead falls below the support level, it confirms the double top pattern. This formation resembles the letter “M” on a chart. Traders often view a double top as a signal that the asset’s price will begin a downtrend.
In an earlier post the legendary trader said technical analysis suggests a market recovery rally could be just around the corner. Brandt calls this pattern a “foot shot” pattern.
Short-term, this is a buy signal, but another user pointed out that this pattern aligns with a doji candlestick pattern.
According to CMC Markets, doji is a candlestick pattern indicating market indecision, where the opening and closing prices are very close despite price fluctuations during the trading period.
Despite these different interpretations, such patterns are generally seen as bullish signals. If you want to learn more about technical analysis, candlesticks and how to use indicators like RSI, you can check out our guide here.
German Government Continues Selling BTC
Meanwhile, the selling by the German Government of seized Bitcoin seems to continue. After initial reports that they bought back BTC turned out to be misinterpreted, it was revealed that BTC was merely transferred back to government wallets as orders didn’t fill. Despite this, the government continued selling even over the weekend.
The selling of government BTC as well as Mt. Gox redistributions are blamed for the recent crypto market dip.
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Data from Arkham Intelligence shows that Germany is the third largest national Bitcoin holder, with the US and UK leading with 213K and 61K of Bitcoin respectively.
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