Leading cryptocurrency analyst Peter Brandt reasserted his long-term bullish stance on the world's largest crypto asset as he shared his technical analysis of Bitcoin's (BTC) short-term price outlook.
In a series of tweets, Brandt pointed out that a head and shoulders (H&S) top pattern has formed on Bitcoin's Factor Real Range chart, eliminating candle wicks or shadow candlesticks. He warned that H&S formations often overestimate or fail to meet their anticipated downside targets.
Factor Real Range is a type of chart that eliminates wicks or shadows on candlesticks. Normally, candlestick charts contain wicks that show the entire price range for that period, with thin lines running above and below the actual opening and closing prices.
The Factor Real Range chart only shows the real body of the candlestick, ignoring the wicks. Some analysts believe this provides a cleaner look by eliminating the noise and volatility that wicks represent.
Based on this formation, Brandt sees potential for a correction towards the mid-to-upper $50,000 level. According to the analyst, this will retest the upper limit of the ascending channel that Bitcoin broke out of on February 26/27.
However, the experienced analyst stated that this is “not a prediction” and investors should decide at their own risk. He also noted that the H&S top will be canceled if Bitcoin regains the $69,000 level.
When asked whether rising interest rates would impact Bitcoin's bullish outlook, Brandt said that “Bitcoin's core strength is the ultimate destruction of fiat currencies,” suggesting that interest rate hikes may have only a limited impact on Bitcoin's trajectory in the long term.
*This is not investment advice.