Veteran trader Peter Brandt has spotted an interesting occurrence on the Bitcoin daily chart. He notes that four daily candles have closed in the 3/10ths of a percent range.
Brandt says this is the definition of price equilibrium and calls this "hinge" behavior.
The veteran trader's comments might suggest a balance between bulls and bears, as he points to a price equilibrium. The current price range represents a "hinge," which marks crucial price levels that further advancements or declines depend on.
Meanwhile, as technical factors play out, IntoTheBlock has reported that negative sentiment on Twitter around Bitcoin is reaching new highs. It states the significance of this: historically, big peaks have taken place shortly before or after price bottoms.
Also, as indicated by on-chain analytics firm Santiment, Bitcoin's exchange supply has fallen to its lowest level since February 2018. It was noted that traders continued moving BTC into self-custody during the uncertainty surrounding Binance and Coinbase, expecting this trend to continue if lawsuits remain.
BTC falling wedge playing out
Crypto analyst "Carl from the Moon" believes that the Bitcoin falling wedge pattern remains in play.
"Bitcoin Falling Wedge is still playing out," he tweeted while predicting a target of $31,000 if Bitcoin breaks to the upside.
A wedge pattern can form when the price of an asset has been declining over time, right before the trend's last downward movement.
As the price slide loses momentum and buyers enter the market to halt the rate of loss, the trend lines formed above the highs and below the lows on the price chart pattern may converge. The price may break through the upper trend line before the lines merge.