PeterBrandt, a renowned trader and analyst, has issued a warning to Bitcoin (BTC) investors regarding a possible trend reversal. Brandt drew attention to a head-and-shoulders pattern on the daily BTC chart and urged traders not to ignore its confirmation. Read his most recent report.

Bitcoin’s Upsurge and Potential Trend Reversal

So, you inquire, what is this ominous-sounding HS pattern? It is a technical formation that frequently indicates a transition from a bullish to a bearish trend. The pattern consists of three peaks, with the middle peak constituting the "head" and the two outer peaks constituting the "shoulders." Typically, these peaks have a decreasing height. When the price breaks below the neckline connecting the lows of the shoulders, the pattern is confirmed.

ALSO READ: Polar BTC Review – Is PolarBTC Scam or Legit?

Brandt tweeted a head-and-shoulders chart. The data shows that BTC broke out from $20,000 in February and hit $26,000–28,000 in March, forming the left shoulder. BTC reached $31,000 in April, becoming the head. BTC recovered from an April 19–24 slump to form the right shoulder.

End of BTC Bull Run? 

However, there is more! Since the beginning of the year, Bitcoin has been on an upward trend, reaching its apex in mid-April. Despite some corrections since then, it has increased by 65.5% this year. Therefore, if the HS pattern holds true, the rally could come to an end.

Before you begin to fret, it is essential to remember that not all HS patterns result in accurate predictions. False breakouts and whipsaws can occur, so additional confirmations are required for trading decisions to be made with confidence. BTC is currently trading at $27,384, a decrease of 1% over the past 24 hours and a decrease of 5.92% over the past week.

ALSO READ:GensMarkets Review – Is GensMarkets Scam or Legit?

Conclusion

Despite the fact that the head and shoulders pattern is cause for concern, it is not necessarily Bitcoin's demise. To make informed decisions, traders and investors must remain vigilant and keep a close watch on Bitcoin's price action. Regardless of whether the cryptocurrency continues its ascent or experiences a trend reversal, the Bitcoin market is never monotonous.