Bitcoin, the leading cryptocurrency by market value, recently reached $63,000, drawing attention from veteran trader Peter Brandt who shared his insights on this bullish trend.
Bitcoin has seen gains for four consecutive days, hitting highs of $63,293 in today’s trading session after rebounding from Friday’s low of $56,538.
Brandt believes Bitcoin (BTC) might be exhibiting its familiar “Hump Slump Bump Dump Pump” pattern, a sequence he has noted in past price movements.
“Bitcoin BTC could be unfolding its often-repeated Hump Slump Bump Dump Pump chart construction,” Brandt stated in a tweet, implying that Bitcoin’s price action could be following a recognizable pattern.
This pattern involves an initial “Hump” or price increase, followed by a “Slump” or price decline. The “Bump” phase shows a recovery, followed by a “Dump,” another decrease. Finally, the “Pump” phase represents a significant upward movement, often reaching new highs.
Analysis of Bitcoin Bears
Brandt further observed that the “July 5 attempt at double top was bear trap, confirmed by July 13 close. Most likely scenario now is that bears are trapped. Close below $56,000 negates this interpretation.”
On July 5, Bitcoin appeared to form a double top, a bearish pattern leading to lows of $53,499. However, Brandt identified this as a bear trap—a false signal suggesting further declines. Bitcoin’s decline leading up to this date adds credence to this view.
A positive close on July 13 invalidated the double top pattern. Brandt suggests that bears might now be trapped, indicating a possible continuation of the upward trend. However, he cautions that a close below $56,000 would invalidate this bullish outlook, marking it as a critical level for traders to watch. As of the latest data, BTC is up 5.05% in the last 24 hours, trading at $62,642.
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