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Dogecoin Forms Reversal Pattern, Peter Brandt Says Further Decline May Occur

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Fri, 07/09/2021 - 08:03
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Yuri Molchan
Trader Peter Brandt has posted a Dogecoin chart with a Head & Shoulders pattern forming on it – that usually signifies a reverse in the direction of the asset’s movement
Dogecoin Forms Reversal Pattern, Peter Brandt Says Further Decline May Occur
Cover image via www.peterlbrandt.com
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Legendary commodity trader Peter Brandt, who has been in the business since the 1970s, has taken to Twitter to share a Dogecoin screenshot.

In the screenshot, the meme-coin is forming a reversal H&S pattern. However, he warns that once this pattern is completed, downward movement is just one of the options that will not necessarily occur.

Is DOGE about to continue moving downwards?

Peter Brandt has shared a DOGE/Tether chart from Binance, marking the Head & Shoulders pattern on it so that it is clearly visible.

He realizes that his tweet may attract indignation from the Dogecoin Army and trolls leaving comments, so he invited the trolls to go ahead.

The Head & Shoulders pattern can signify a reversal in the trend both ways, but here it is showing a reversal to the South.

However, the legendary trader warns that patterns do not always work literally. The pattern must be completed first, he wrote in a comment. After that, it can still fail to act, morph or fulfill its implications.

Some users in the comment thread suggested that the pattern looks more like a Descending Triangle, not a Head & Shoulders.

A Descending Triangle is a bearish pattern. It suggests that downside movement is building and a breakdown is in the cards.

Related
Bitcoin Crash Below $30,000 Expected by Peter Brandt as He Launches Twitter Poll to Estimate Risks

Peter Brandt expects Bitcoin may drop below $30,000

On Thursday, July 8, Brandt launched a poll on his Twitter page to collect his followers' takes on how far Bitcoin may fall when it breaks below the $30,000 level.

Among the options he offered was dropping to the $25,000-$20,000 range, sticking between $25,000 and $20,000 and plunging below the $20,000 mark to the lows where the flagship cryptocurrency remained until December 2020.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.