Bitcoin pushed past $112,000 on Wednesday, giving bulls something to cheer about. But legendary trader Peter Brandt says the rally isn’t guaranteed just yet.
While he’s still holding a long position on BTC, Brandt warns that a drop below $107,000 could flip the script entirely.
This is something you want to know. Read on!
Breakout Pattern Spotted but It’s Not Without Risk
Brandt’s latest chart shows Bitcoin breaking out from an expanding triangle, also called a broadening wedge. This pattern is marked by a rising lower trendline and an upper line that doesn’t converge. Basically, the price swings are getting wider, and so is the risk.
While the breakout is encouraging, Brandt points out that expanding triangles often fail. That means there’s still a chance this move turns into a fakeout if support doesn’t hold.
$108K Turns Support, but $107K Is the Real Test
For months, Bitcoin struggled to break above $108,100. Now that level has flipped into support – a solid win for the bulls. But Brandt says the real line in the sand is $107,000.
If Bitcoin dips below that, the current bullish pattern could fall apart. In his words, it might “morph” into something else entirely, likely a more bearish setup that could lead to a sharp pullback.
Targets Ahead: $120K and $134K If Bulls Stay in Control
Despite the warning, Brandt still sees upside if support holds. Based on the pattern’s range, he’s watching for price targets around $120,958 and $134,886. He previously predicted Bitcoin could climb as high as $118,000 in the near term, and that scenario is still in play.
Right now, Bitcoin is trading around $112,288, holding above key levels, but not in the clear just yet.
Bottom Line
With over five decades of trading experience, Brandt knows how quickly markets can flip. He’s still bullish, but the message is clear: $107K is the must-hold level for this rally to continue.
If it holds, Bitcoin could be gearing up for another leg higher. If not, brace for a potential reversal.
