Veteran Trader Peter Brandt Shares Unusual Bitcoin Chart Pattern Reflecting Current Market Conditions
Smart trader Peter Brandt has pointed to an interesting chart pattern that could give us a hint about the current situation in the market
One of the most popular traders in the crypto industry with over 47 years of experience, Peter Brandt, has pointed to an unusual chart pattern that may reflect the current state of the market for both Ethereum and Bitcoin.
According to Brandt, Ethereum is currently forming a symmetrical triangle pattern, which usually reflects the fact that the market is confused and will continue to reach forward rather than break out in either direction.
There is a possible symmetrical triangle that forms in $ETH† Sym triangles are typical of a confused market. Much less reliable than rectangles or right triangles. Sym triangles can be continuation (4 points of contact) or inversion (requiring a fifth point) pic.twitter.com/RyBAZxNpxJ
— Peter Brandt (@PeterLbrandt) March 6, 2022
The breakout for the second largest cryptocurrency will most likely happen only in case of the appearance of the fifth touch point within the symmetrical formation. The reversal should also be followed by a spike in trading volume, bringing purchasing power.
Before pointing out the formation on the Ethereum chart, Brandt shared the same pattern on Bitcoin, calling it the “least reliable” due to its inability to predict the future movement of the assets ahead of a breakout.
However, in the event of a breakout, the symmetrical pattern works well. Usually, the pattern is considered complete after the asset’s price breaks through the top edge of a pattern and then shoots up, forming a consolidation range above the range.
Performance in the chart of Bitcoin and Ethereum
According to TradingView charts, both digital assets are currently moving in the symmetrical pattern mentioned by Brandt. Bitcoin has reached the lower bound of the triangle and has not bounced back yet.
Ethereum has also crossed the line but sadly fell below it and is now trading at $2,525, with the lowest volume seen in the past 30 days. At the time of writing, Bitcoin is trading at $38,115, without any volatile moves.