Bitcoin continues to show volatility, surpassing the $112,000 mark. However, renowned trader Peter Brandt raises concerns about the sustainability of this increase.
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. While the breakout is encouraging, Brandt points out that expanding triangles often fail.
> There is nothing special about this chart. An expanding inverted triangle has a higher rate of morphing or mortality than a pattern such a horizontal pennant. Nevertheless I am long BTC. A decline below 107000 would suggest morphology. [CITE_W_A]
$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, potentially morphing into a more bearish setup leading 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.
With over five decades of trading experience, Brandt knows how quickly markets can flip. He remains 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.
