Bitcoin (BTC) needs to stay above $29,000 to preserve the bullish case in the short term, famous trader Peter Brandt has warned.
Brandt: Bitcoin daily performance “negative”
BTC/USD lost around 5% on Thursday, erasing more and more of its previous gains even as many on-chain indicators flipped bullish.
For Brandt, lower timeframes showed little optimism, and a shake-up was now necessary to disrupt the negative tone.
“The 5-week rectangle continues to form. The daily chart is decidedly negative,” he commented alongside an annotated price chart.
“The burden of proof is on the bulls unless they can keep $BTC above $29,000.”
That level would still be higher than that to which Bitcoin dipped last week, with the current local bottom at $28,600 on Bitstamp.
Violation of this floor opens up ground towards the previous multi-year high of $20,000, various sources have warned.
Bitcoiners are nonetheless at odds over what could happen in terms of bearish near-term price performance.
On Wednesday, analyst John Bollinger, creator of the Bollinger Bands, eyed $31,000 as the lowest of three “logical” levels for BTC/USD. Some responses argued that such levels would not be revisited based on recent behavior.
Bollinger revealed he was also watching $35-36,000 and $41,000.
“So far they have been important milestones,” he said.
A painful price range
Bitcoin nonetheless conformed to predictions over its likely daily bounce level on Thursday.
As Cointelegraph reported, a crucial zone to hold for traders is between $32,300 and $33,000, with BTC/USD holding at the upper end of that area.
Related: Coincidence? Bitcoin saw its highs and lows on ‘Turnaround Tuesdays’ in June
Lower prices continue to rattle sentiment, even among longtime market participants. BTC/USD is now as far away from its stock-to-flow target as it was in January 2019, just after the pit of the 2018 bear market. According to the popular price forecasting model, Bitcoin should cost almost $78,000 this week.
Given the events in China, however, many argue that such price suppression is itself a logical outcome.
“That is not hyperbole, that is fact.”