(Kitco News) Despite steadying around the $20,000 level, Bitcoin might not be done with its dramatic descent, according to one veteran trader.
Famous trader and author with nearly 700k followers on Twitter, Peter Brandt, issued a warning on Bitcoin, indicating that the world's largest cryptocurrency could have more to fall.
"When it looks like a pennant and acts like a pennant, it is often a pennant," he tweeted along with a chart showing what he means.
A pennant trading pattern is a continuation chart pattern. It usually points to consolidation after a significant move up or down, followed by a move in the same direction.
When it looks like a pennant and acts like a pennant it is often a pennant $BTC pic.twitter.com/O7RtnvFSp0
— Peter Brandt (@PeterLBrandt) July 5, 2022
For Brandt, this is a sign that Bitcoin is still in a downtrend, and it is too early for a sustained recovery.
Bitcoin tumbled below $18,000 in mid-June, closing down the month down around 40%. At the time of writing, Bitcoin was trading at $20,911, up 4% on the day but down 70% from its November all-time highs of $69,000.
One potential precursor to Bitcoin's recovery could be its market dominance. Once Bitcoin reaches 50% in terms of its crypto market dominance, it would be a positive sign for prices, Brandt explained last week.
At the time of writing, Bitcoin's market cap dominance was at around 41%, according to CoinGecko.
Brandt became well-known in crypto trading circles when he predicted Bitcoin's 2018 collapse.
