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Prominent trader Peter Brandt says that he remains long Bitcoin after the leading cryptocurrency logged a new record peak on Wednesday.
Brandt's chart shows a recent breakout above the upper boundary of an expanding triangle, which is also known as "a broadening wedge".
The lower trendline is sloping upwards while the upper trendline is not converging with the lower one. Notably, the range between the highs and lows is now expanding.
There's a horizontal line at $108,100, which previously acted as during months of consolidation. Now, it has seemingly turned into support in a big win for the bulls.
Brandt has now identified the $107,000 level as critical support for his long position.
If BTC falls below $107,000, it would signal that the current pattern (the expanding inverted triangle) has "morphed" into something else. In such a case, the pattern would, of course, be invalidated.
Expanding triangles tend to have a higher failure rate, meaning that they could potentially lead to a false breakout.
The chartist has identified two price targets ($120,958 and $134,886) following a breakout based on the pattern's range.
The breakout appears to have already occurred, with the cryptocurrency trading above the upper trendline of this pattern, but the bulls are not out of the woods just yet.
Bitcoin is currently changing hands at $111,257, according to CoinGecko data. As reported by U.Today, it reached a record high of $112,040 on the Bitstamp exchange on Wednesday after more than a month of consolidation.
Brandt previously predicted that BTC could potentially soar to $118,000 in the near future based on his technical analysis.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team