According to the veteran trader Peter Brandt Bitcoin has naturally reached its potential bottom on the trading graph that it has been conforming to form since early July. The crypto market is in its extreme volatility, and it has affected almost every cryptocurrency out there.
Bitcoin is trying its best to keep its head above the water, but it is becoming harder and harder to pump its lungs full of oxygen. Bitcoin has reached the end of the pattern that it was trying to form in July, and according to this, it means that there is still potential for Bitcoin, the flagship cryptocurrency, to fall even further and volatility to kick even harder.
Bitcoin entered a 25% plunge in the month of July which means that the shares of Bitcoin and its price were being slain across the board; it was forming a wedge that often acts as a cooldown pattern. And it happens during the amplitude trends. Many assets, when entering the consolidation phase, either ascending or descending wedges are destined to be formed.
This is where the investors and traders sit down and study the pattern that is being laid out in front of them over the charts; this is when they decide either to buy more or redistribute their present investment into other potential channels. All of this needs to be done before the market takes a swing which is a volatile move ahead of its time.
The consolidation period for Bitcoin has come to a natural halt, which means that the pattern it was trying to form has been completed in its own doing. Now the situation is that investors are pouring in money in the hopes of a bullish rally, but the volatility factor of the crypto market stays strong still.
Bitcoin is moving ahead without looking back at the pattern that it formed earlier, which is not a piece of very good news; it potentially means that Bitcoin could continue to fall and fall until it is too late for the cryptocurrency to resurrect itself or someone else to do the resurrection for Bitcoin.