- Seasoned trader and analyst Peter Brandt said that bitcoin has recovered to a level similar to the level it had seen prior to the July rally.
- Although the risk-averse sentiment remains largely intact, he noted that this may not be the time to rebound so sharply.
- At the time of writing, BTC/USD was trading near $21,400.
At the time of writing, bitcoin price is up about 1.2% over the past 24 hours and is trading above $21,400 as the bulls are pushing higher.
There are two small green candles followed by six consecutive reds in minor uptrend on the daily chart.
However, with the broader market largely uncertain, the Belvedere cryptocurrency is still vulnerable to a selloff that pushed BTC/USD from last week’s high above $25,000.
Rising Wedge Target: What’s Next for BTC?
On Friday, the price of BTC fell nearly 10% as broader risk asset markets sank on news the US Federal Reserve intended to maintain a bullish outlook despite data suggesting slowing inflation.
Risk-off sentiment saw bitcoin hit its lowest price level in three weeks ($20.760 on Coinbase, with the pair down nearly 12 percent this week). What famous trader Peter Brandt has to say about the BTC price movement:
Aiming for a Rising Wedge in Bitcoin for All Practical Purposes $BTC have already met. This in itself is not a reason for bullishness and does not mean that BTC cannot go down right now. pic.twitter.com/fB3sGa9e6o
— Peter Brandt (@PeterLBrandt) 20 August 2022
The benchmark cryptocurrency is therefore headed towards major downside targets, with Brandt pointing to a chart indicating a breakout from an ascending wedge.
If the bulls hold support then some bounce is possible from here, but more pain is likely if the demand reload zone is broken, a scenario crypto analyst Michael van de Pope also highlighted. Tweet Below
If we continue to decline, it is important to keep an eye on the $19.3K level #bitcoin and maybe $1,400 for the area #ethereum,
Buyers should regularly step into those areas.
— Michael van de Pope (@CryptoMichNL) 20 August 2022
BTC/USD dropped to a low of $17,600 in the last major breakdown below $20,000.