According to veteran analyst Peter Brandt, Bitcoin is trading near a crucial support level that could determine its next direction.
BTC is currently hovering around $29,110 and is close to a trendline that has been touched many times since the 2023 low and is hovering at $28,994 at the time of this writing.
According to Peter Brandt, a veteran trader and charting expert, a break below this trendline can be a bearish signal or a bear trap. The bear trap is used to describe a price action that attracts short traders before bullishness.
Brandt stated that it is important to go below the trend line and said:
“As a swing trader, I respect trendline violations. So my positions will be either short or horizontal. But if a bear trap really “spreads” I would consider it a bullish development. I strongly prefer the horizontal graphic structure.”
*Not investment advice.