Veteran trader and classical chartist Peter Brandt has urged Bitcoin maximalists to stop exhibiting dogmatic behavior.
In his latest market commentary, Brandt noted that there are two heavily conflicting technical setups for Bitcoin (BTC), pointing out an "ugly" flag pattern that could spell trouble, alongside a more optimistic "horn" formation.
Brandt has come up with both bullish and bearish scenarios to remind the market that professional trading requires flexibility.
"Cryptocultists"
Brandt didn't hold back his criticism of the cryptocurrency community's one-directional bullishness.
"I am well aware that you cryptocultists cannot stand the idea of traders being flexible and not totally dogmatic like you," Brandt stated on X.
He has stressed that seasoned traders do not marry a single narrative; instead, they analyze the charts as they develop and prepare for multiple potential outcomes.
Two setups
When it comes to Bitcoin's current price action, Brandt noted that the asset is "set up for me in two ways."
On the bullish side of the ledger, Brandt pointed to a pattern he described as a "constructive" horn.
Based on the charts provided in his analysis, this structure resembles a rounding bottom or a broad, upward-curving base following a period of downward price action.
A "horn" bottom can indicate that selling pressure has been exhausted/ If this pattern plays out, it could serve as a launchpad for a sustained bullish reversal.
Conversely, Brandt drew attention to a second, far more pessimistic pattern.
Looking at the alternative chart, Bitcoin appears to be consolidating in an upward-sloping channel immediately following a sharp drop. In technical analysis, this is known as a "bear flag," which is known as a notorious continuation pattern. If Bitcoin fails to break out to the upside and instead falls through the bottom support line of this flag, it typically triggers another aggressive leg down.
"Opinons are a dime a dozen"
Ultimately, Brandt declined to guarantee which way the market will break, leaving the interpretation up to individual traders.
"Take your pick," he concluded. "Opinions are a dime a dozen." The overarching message is clear: in a market currently battling sticky inflation, cautious Federal Reserve policy, and shifting technicals, flexibility and risk management are far more valuable than rigid devotion to a single price target.
Dan Burgin
Vladislav Sopov
