Renowned trading veteran Peter Brandt has reiterated his view that Bitcoin remains entrenched in its consolidation phase. Despite a brief recovery that saw BTC climb back to $61,000, Brandt emphasizes that the cryptocurrency’s current market state reflects ongoing volatility rather than a clear trend reversal.
Bitcoin has experienced a modest rebound over the past few days, reaching a high of $61,000 before slipping back below the $60,000 mark. This recent surge had flashed hope among some analysts that a broader market recovery might be imminent. However, Brandt’s analysis suggests that Bitcoin’s consolidation phase is far from over.
Brandt’s observation aligns with the broader market sentiment, which has been marked by fluctuating prices and a lack of definitive direction. The current price action reflects a market still grappling with indecision, as evidenced by Bitcoin’s movement within a wide trading range.
According to Brandt, the weekly Bitcoin chart displays a megaphone pattern—a formation characterized by higher highs and lower lows. This pattern indicates increasing market volatility and uncertainty. The megaphone pattern, also known as a broadening formation, highlights the market’s struggle to establish a clear trend.
In this pattern, the upper boundary is positioned near Bitcoin’s all-time high (ATH) of $73,835. On the downside, support has been consistently forming in the $52,000 to $55,000 range. This support has been effective in preventing a significant breakdown, while the upper boundary represents a key resistance level.
The megaphone pattern suggests that Bitcoin may continue to experience heightened volatility within this broad range. Traders are currently testing both ends of the pattern, and until a decisive breakout above the upper boundary or a drop below the lower support occurs, the consolidation phase is likely to persist.
Current market depth data from Into The Block reveals a balanced yet cautious market. Bitcoin’s average bid price across leading exchanges is $59,511.60, while the average ask price stands slightly higher at $59,514.07. This small discrepancy indicates a relatively balanced market, with neither buyers nor sellers gaining a decisive edge.
Support levels are notably strong at the 30% market depth mark, where there are 9,460 BTC in bids. This robust buying interest could help prevent further declines in Bitcoin’s price. Additional support is present at the 20% mark with 7,350 BTC, further cushioning against downward pressure.
On the resistance side, significant selling interest is observed at the 30% and 20% market depth marks, with 10,060 BTC and 7,020 BTC in asks, respectively. This resistance could cap any potential upward movement in the short term.
Brandt’s analysis, combined with the current market depth data, suggests that Bitcoin’s consolidation phase is not yet over. Until the cryptocurrency either breaks out above the $73,835 resistance level or falls below the $52,000 support, Bitcoin is likely to remain range-bound.
Investors and traders should watch for a decisive move either above the upper boundary or below the lower support to signal the end of the consolidation phase. For now, Bitcoin’s market remains in a state of flux, with increased volatility and ongoing market indecision.
Julie is a renowned crypto journalist with a passion for uncovering the latest trends in blockchain and cryptocurrency. With over a decade of experience, she has become a trusted voice in the industry, providing insightful analysis and in-depth reporting on groundbreaking developments. Julie's work has been featured in leading publications, solidifying her reputation as a leading expert in the field.
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