Since the beginning of the week, Bitcoin's price has experienced a notable decline of over 8%, marking a notable correction in its recent surge. This dip manifested itself in a fat red candle on the trading charts, with prices falling to $62,900, the lowest level witnessed in the past two weeks.
The fall in the price of the main cryptocurrency by an almost double-digit percentage figure caused fear, uncertainty and doubt among market participants, when many began to consider whether the unrestrained growth of recent months was coming to an end.
Veteran trader Peter Brandt weighed in on the current price action of Bitcoin, suggesting a broader perspective on market sentiment. He indicated that the сryptocurrency had potentially completed a "head and shoulders" pattern. However, Brandt emphasized the significance of not solely relying on technical patterns, highlighting the possibility of variations in price behavior.
Two scenarios
Despite the correction, Brandt expressed confidence in Bitcoin's long-term bullish trend, considering the pullback as a healthy development within the market cycle. He noted that corrections are inherent in any upward trajectory and that Bitcoin still remains within a significant bull trend.
He also mentioned a potential scenario where Bitcoin could retest the upper boundary of an advancing channel at around $52,000. However, the trader clarifies, if the Bitcoin price recovers to values of $69,000, then the pattern would be refuted, and a decrease in the 50,000 zone should not be expected.