• Renowned trader and analyst Peter Brandt have issued a warning to Bitcoin (BTC) investors about a potential trend reversal.
• He highlighted a head and shoulders pattern on the daily chart of BTC, urging traders not to disregard its confirmation.
• If the H&S pattern proves to be true, it could spell the end of the rally.
Head and Shoulders Pattern
The head and shoulders pattern is a technical formation that often indicates a shift from a bullish trend to a bearish one. The pattern consists of three peaks, with the middle peak forming the “head” and the other two peaks forming the “shoulders”. These peaks are typically of decreasing height, and when confirmed by prices breaking below the neckline connecting lows of both shoulders, then this could indicate an end in current bull run for Bitcoin.
Bitcoin’s Performance in 2021
Bitcoin has been on an upward trend since the start of 2021, reaching its peak in mid-April. Despite experiencing some corrections since then, it has still gained 65% this year with BTC currently trading at $27,384 experiencing only 1% decline within 24 hours and 5.92% decrease over past week.
Not all head and shoulder patterns result in accurate predictions as false breakouts or whipsaws can occur which makes additional confirmations necessary before making informed trading decisions.
While there is cause for concern due to Peter Brandt’s analysis revealing H&S pattern on BTC’s daily chart; it is not necessarily indicative of an end in bull run yet as traders should stay vigilant when monitoring price action before making informed decisions regarding their investments on Bitcoin cryptocurrency market.