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Peter Brandt, one of the most well-known commodities traders, has stated that he has shorted Bitcoin (BTC).
Despite being a long-term holder of the flagship cryptocurrency, Brandt is currently bearish based on the megaphone pattern.
"No tips. It is brutal. I hate when I have to bisect my brain. It is actually painful. Mostly happens in stocks," Brandt said in a recent social media post.
Back in August, Brandt stated that there was a 30% chance that Bitcoin had already topped during the current cycle. The prominent trader predicted that BTC would eventually be able to soar all the way to $500,000 by November 2026.
Bearish "megaphone" pattern
Brandt's assessment is based on the bearish megaphone pattern, which is a formation that is a broadening wedge that is characterized by growing price volatility.
In Bitcoin's case, the pattern spotted by Brandt appears to be a broadening top. The upper trendline and the lower trendline are spreading apart, meaning that both the bulls and the bears are becoming more aggressive.
A daily close below the lower trendline is likely to see a bearish reversal.
The cryptocurrency reached a new all-time high of $126,080 on Oct. 6. However, the leading cryptocurrency is now on track to finish this month in the red (which would be the very first October in the red since 2018).
Earlier today, the cryptocurrency plunged to an intraday low of $106,464, but it has since recovered back above the $110,000 level.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team