According to an analysis shared by veteran investor Peter Brandt, Bitcoin has finally reached the target of the pattern it has formed since mid-July. The expert says that price performance does not mean that the market has to be extremely bullish. He also adds that more drops are still on the table for BTC and SHIB.
Bitcoin completes ascending wedge formation
In July, after a massive 25% drop, Bitcoin entered a rising wedge formation. On charts that go into consolidation channels or into ascending and descending wedges, investors spend time accumulating or redistributed their funds.
For all practical purposes the target of the rising wedge in Bitcoin $BTC has already been met. That is not a reason per se to be bullish and it does not mean BTC cannot go lower yet pic.twitter.com/fB3sGa9e6o
— Peter Brandt (@PeterLBrandt) August 20, 2022
As the consolidation period is coming to an end, the market is seeing a rapid increase in trading volume and volatility. This causes a rise or a fall. In the current situation, the market has decided to push BTC down, causing it to drop to the July level. According to Brandt, we have reached the target of the formation on the Bitcoin chart. This means that Bitcoin has been moving regardless of the pattern that has been in the market for the past few weeks.
What does the analyst expect now?
After falling below the lower boundary of the wedge, Bitcoin also dropped below the 50-day moving average. This means that it is back in a deep downtrend and needs major support. According to institutional net flows, large investors are actively selling. This fuels the decline to a certain extent. As a result, Brandt says that despite the positive outlook, BTC remains uncertain.
What’s next for SHIB?
SHIB price lost a significant portion of its value after whales timed Tuesday correctly. According to Santiment’s number of whale transactions, the whales were most active between August 14 and 19. While these high-volume traders initially pushed SHIB higher, more whales started selling at or near $0.00001792 weekly.
The upward move encouraged individual investors to get on board, supported by speculation around the merge in September. However, whales heralded the top and triggered a bearish correction. While the same individual investors face new capitulations, the Shiba Inu price is in the works of the bearish shackles it has long sought to escape. Brandt touches on this scenario through a SHIB chart.
With $SHIB hold above neckline support, or will we need to drop the letter "B" and adopt a different letter that comes later in the alphabet?💩 pic.twitter.com/vZQQI61JK1
— Peter Brandt (@PeterLBrandt) August 20, 2022
In the chart above, Brandt noted an inverse head and shoulders pattern formed on the SHIB chart. Holding the neckline of the formation is one of the bulls’ catalysts for higher highs. Brandt humorously says that the inverted head and shoulders formation that resembles the letter “B” will look like any other letter if the neckline is broken:
Keep it above the neckline brace with the SHIB, or will we have to drop the “B” and adopt a different letter that comes later in the alphabet?
cryptocoin.comAs you follow, SHIB price spends around $0.000013 on August 21.
