In a recent tweet, veteran commodity trader Peter Brandt writes that the menacing head-and-shoulders pattern, which has formed on Bitcoin’s four-hour chart, could end up failing.
Earlier today, Bitcoin plunged to $58,000, its lowest level since Oct. 15. The sudden plunge has stoked fears of another bear market.
The top cryptocurrency is down 13.3% from its all-time high of $67,000 that was reached on Oct. 20.
The ominous head-and-shoulder formation appeared after buyers failed to gain ground above the $63,000 resistance level and retain the most recent peak.
If the current run ends up exhausting itself, Brandt expects a larger congestion pattern to form.
An ETF for shorting Bitcoin
With some analysts clamoring about the overheated Bitcoin market, investment firms are coming up with ingenuine ways of shorting the largest cryptocurrency.
Meanwhile, Alexandria-based Direxion, which is known for its leveraged exchange-traded products, recently filed to launch an ETF that will short the price of CME’s Bitcoin futures contracts.