- Senior trader and analyst Peter Brandt says Bitcoin looks to have reached levels similar to those before the July rally Level.
- However, there is a risk – Sentiment is largely intact, noting that now may not be the time to turn so bullish.
- At the time of writing, BTC/USD is trading near $21,400.
At the time of writing, bitcoin prices are up around 1.2% over the past 24 hours, trading above $21,400 as bulls look to push higher.
The slight uptick on the daily chart followed six red candles in a row with two small green candles.
However, with the broader market largely undecided, the bellwether cryptocurrency remains vulnerable to pushing BTC/USD from highs above $25,000 The impact of the high sell-off last week.
Chart showing BTCUSD price action and key levels. Source: TradingView
Rising Wedge Target: What’s Next for BTC?
Friday, following news that the Fed intends to maintain The hawkish attitude led to a drop in the broader risk asset market, with the price of BTC down nearly 10%.
Risk aversion has brought Bitcoin to its lowest price level in three weeks ($20.760 on Coinbase, this week The pair is down nearly 12%). Here’s what legendary trader Peter Brandt had to say about BTC price action:
For all practical purposes, the Bitcoin $BTC rising wedge goal has been achieved. This in itself is not a bullish reason nor does it mean that BTC can’t go lower just yet pic.twitter.com/fB3sGa9e6o
— Peter Brandt (@PeterLbrandt) August 20, 2022
As such, the benchmark cryptocurrency is on a key downside target, Brandt said, pointing to a chart showing a breakdown of a rising wedge.
If bulls find support, it could bounce from here, but if the demand overload zone breaks, it could bring More pain, crypto analyst Michael van de Poppe also tweeted below.
If we continue to decline, it is important to keep an eye on the $19.3K level for #Bitcoin and the $1,400 area for #Ethereum.
Buyers should enter these areas regularly.
— Michaël van de Poppe (@CryptoMichNL) August 20, 2022
The last big drop below $20,000 resulted in BTC/USD fell to lows around $17,600.