Bitcoin: Insights from Brandt and Inmortal on Future Price Action
Renowned trader Peter Brandt has expressed concerns about the potential challenges ahead for Bitcoin (BTC), suggesting that it is exhibiting a pattern that could have negative implications for the leading cryptocurrency.
Brandt observes that Bitcoin’s price movement seems to be forming a classical head and shoulders pattern, a technical analysis signal indicating a potential reversal from a bullish to a bearish trend.
A head and shoulders should be taken seriously if it is completed $BTC pic.twitter.com/n5ZiLasmUC
— Peter Brandt (@PeterLBrandt) May 11, 2023
Conversely, a well-tracked anonymous crypto analyst named Inmortal proposes an alternative perspective, speculating that Bitcoin‘s recent decline might be indicative of a short squeeze occurrence.
Good ingredients for a short squeeze.
Price at range low + OI up and price down
But remember, buyers need to step in to force sellers to start closing their positions.#Bitcoin pic.twitter.com/76ZmaFivhL
— Inmortal (@inmortalcrypto) May 11, 2023
A short squeeze unfolds when traders who have borrowed an asset at a certain price with the intention of selling it at a lower price to gain profits are compelled to buy back the borrowed assets due to a shift in market momentum, subsequently triggering further price increases.
Inmortal, in addition to providing insights on the short squeeze, also offers predictions for Bitcoin’s future price movements over the next few years. According to their analysis, a bear market is expected in 2022, characterized by a downward trend. In 2023, they anticipate sideways movement with a mid-cycle rally.
READ MORE: Bitcoin Set to Reach ATH by June 2024 – InvestAnswers
The year 2024 is predicted to see lateral movement in the first two quarters, followed by the commencement of a bull market in the third and fourth quarters. Finally, 2025 is projected to be a bullish year.
For the remainder of 2023, Inmortal outlines several more detailed scenarios in a Twitter thread. Among these possibilities, they favor one outcome in which Bitcoin revisits the $25,000 level, mirroring a pattern observed in 2016. They expect this retracement to be accompanied by sustained demand and consolidation above $29,000.
The third quarter is predicted to be unremarkable in terms of price action, while increased volatility is anticipated in the fourth quarter, resembling the market behavior seen in 2016.
At the time of writing, Bitcoin istrading at $26,940, representing a 2.8% decline over the past 24 hours.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
