Expert trader Peter Brandt warns Bitcoin (BTC) investors about a potential bearish trend reversal as the cryptocurrency forms a textbook head and shoulders pattern, according to his Twitter account.
Brandt, who boasts 696,400 followers on the platform, highlights the importance of paying attention to such patterns if they are completed.
Meanwhile, prominent pseudonymous crypto analyst Inmortal, who has 194,600 followers on Twitter, suggests that Bitcoin’s recent dip may have the makings of a short squeeze.
Inmortal explains that a short squeeze can occur when traders who borrow an asset at a certain price in hopes of selling it for less are forced to buy back the assets they borrowed as momentum moves against them. This, in turn, triggers further rallies.
According to Inmortal, there are good ingredients for a short squeeze, including a price at a range low, open interest up, and a price down. However, the analyst emphasizes that buyers need to step in to force sellers to start closing their positions.
Brandt and Inmortal’s insights add to the growing uncertainty surrounding Bitcoin’s future. Investors are keeping a close eye on the cryptocurrency market as it continues to experience volatility, with some experts predicting a possible bear market ahead.