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Legendary trader Peter Brandt recognizes crucial Bitcoin (BTC) pattern

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Peter Brandt recently took to social media to share his insights into a Bitcoin price pattern that could indicate significant moves ahead. Brandt's tweet asked a cryptic question, referring to a “coffin corner” and a “springboard pattern,” terms not commonly used in the technical analysis lexicon.

Upon closer inspection, Brandt's chart appears to show Bitcoin trading within a converging pattern, typically referred to in technical analysis as a symmetrical triangle. This pattern is often characterized by lower highs and higher lows as price action narrows, indicating a balance between buyers and sellers. At the convergence of these trendlines, there is a possibility of significant price movement as a breakout or breakdown could occur.

BTC/USD chart from TradingView

This pattern has two effects. A “coffin corner” could indicate a position where Bitcoin risks a sharp decline if support fails. Conversely, the “springboard pattern” implies a potential bullish breakout, where price could use the tightening consolidation to catapult higher.

To put Brandt's observations into context with the broader market, one must consider the asset's support and resistance levels. Currently, Bitcoin has local support around $37,084, consistent with previous price consolidations and psychological round numbers that typically serve as mental anchors for traders. On the resistance side, a local peak can be identified at $50,070, a level where previous rallies have faced selling pressure.

Should Bitcoin break through resistance in a growth scenario, this could confirm the “springboard pattern” and potentially lead to a test of higher resistance levels, with traders looking for historical price ceilings or Fibonacci extensions as possible targets.

Conversely, a price decline scenario could develop if Bitcoin breaks the support level, which could lead to a “Sargeck” outcome. This could result in the asset testing lower support levels, potentially looking for previous significant lows or areas of high historical liquidity.

About the author

Arman Shirinyan

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with in-depth analysis of crypto projects, and technical analysis of cryptocurrency trading pairs.

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers

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