Veteran trader Peter Brandt believes the recent $2,7 billion sale of Bitcoin foreshadows a dump.
On August 24, a huge crypto whale dumped 24,000 BTC at once, causing the coin’s price to drop from $115,000 to $111,000. His wallet holds another 152,000 BTC worth over $17 billion, so many investors fear he will continue selling the digital asset and its price will collapse to $70,000 or even $60,000.
Most of you nerds are aware of the huge Bitcoin sell order that was filled over the weekend. Some are shrugging it off. But I wouldn’t jump to conclusions. This trade is supply. Tops in markets are created by supply or selling. BTC needs to break above $117,750 again to break the double top [bearish] pattern that has been in place for the last seven weeks,” Peter wrote.
Brandt’s post was commented on by Mark Ritchie II, a long-time wealth manager for clients. According to him, having traded Bitcoin for many years, he came to the conclusion that studying the chart provides important information for predicting the change in the cryptocurrency’s value. So, instead of listening to tales about the BTC rate pumping to $150,000-250,000, he suggests looking at the situation from the point of view of a technical analyst.
This view suggests that there will be dark clouds gathering over Bitcoin, especially if the BTC price-ETF iShares Bitcoin Trust (IBIT) is set to fall below the $63,4 support barrier. Overnight, the derivative fell to $63,19 in over-the-counter trading, making the risk of a bearish trend continuation greater than ever.
Support barriers as indicated by Richie on the chart