​Analyst Peter Brandt allows the possibility of a further decline in the rate of bitcoin

The material is not an investment recommendation and is published for information purposes only.

What’s new? On May 24, analyst and trader Peter Brandt recorded a pattern known as a “pennant” or “flag” on the bitcoin price chart. According to Brandt, this technical analysis pattern may indicate potential “bearish implications,” and in the short term, bitcoin will continue its downward movement. To prevent this scenario and negate the pattern, a close above bitcoin’s average highs is necessary.

This is known as a pennant or flag and has short term bearish implications unless negated by close above mid point highs. $BTC pic.twitter.com/kLz6aTHMrz — Peter Brandt (@PeterLBrandt) May 24, 2023

Who is Peter Brandt? He is a cryptocurrency analyst and trader who has been working in the financial markets for more than 40 years. He is the creator of Factor Trading, a service that provides expert reports and analysis of asset value charts.

What else is known? In another May 24 tweet, Brandt noted that charts and technical analysis are not reliable tools for price forecasting.

SHOCKING NEWS just in. Charts and technical analysis are NOT reliable for price forecasting. To you hot shots who think you have something magic, let’s hear from you in 10 years — Peter Brandt (@PeterLBrandt) May 24, 2023

Bitcoin may be approaching historically high oversold levels, according to analytics platform Glassnode. On May 24, the MVRV ratio is at 1,09, indicating that the market has only 9% unrealized profit left. This coincides with levels at cycle lows in 2018, 2019, and March 2020.

ICYMI: The recent rally above $30k saw the Adjusted MVRV Ratio rise to a value of 1.21, suggesting a fairly modest 21% unrealized profit level was reached.Currently, the aMVRV is recording a value of 1.09, suggesting just 9% unrealized profit remains within in the market. This… pic.twitter.com/k2IE7U7gRr — glassnode (@glassnode) May 24, 2023

As of May 24, 13:15 UTC, bitcoin is trading at $26 694 on Binance, having lost 2,22% in 24 hours.

Analyst’s previous predictions. On May 11, Brandt recorded a fully formed “head and shoulders” pattern on the bitcoin price chart, which could indicate a trend reversal in the downward direction. In March, the expert predicted that BTC would reach new historical highs within a year. In February, he found similarities on the BTC price chart with the events of 2019. According to Brandt, “price walls” patterns significant for the first cryptocurrency were also formed then.

And in late April, the trader predicted an increase in bitcoin’s share of the crypto market, which will strengthen the asset’s leading position.