While Bitcoin has been on a bumpy path in August, its performance in the coming months is a matter of curiosity.
At this point, Peter Brandt, who predicted the Bitcoin crash in 2017, said that BTC is in a position to end the correction process that has been going on for months.
Veteran analyst Peter Brandt noted in a recent blog post that Bitcoin may be preparing to break out of a megaphone formation, ending its months-long correction.
According to Brandt, BTC has been in an expanding triangle or megaphone formation on the weekly chart for five months.
He also noted that Bitcoin is drawing an inverse head and shoulders pattern on its daily chart, indicating bullish momentum as investors are not waiting for the price to fall one last time before accumulating.
At this point, the analyst said that according to the charts and patterns, BTC will experience a major rally if it breaks the resistance level of around $72,000.
“The dominant chart structure on the weekly chart is a five-month expanding triangle or megaphone. This indicates a major breakout.
“The daily chart is showing a possible completed inverse head and shoulders, which is part of a larger congestion. I went long on BTC at this point. This is a position in anticipation of a larger breakout that is pending.”
Bitcoin, which has fallen 1.5% in the last 24 hours, continues to trade at $62,800 at the time of writing.
*This is not investment advice.
