Veteran Trader Peter Brandt Shares Insights on Bitcoin Price Rally

Bitcoin, the largest cryptocurrency by market capitalization, has recently surged to $63,000, prompting insights from experienced trader Peter Brandt regarding this upward trend.

In the latest trading session, Bitcoin has seen its fourth consecutive day of gains, reaching a high of $63,293 after bouncing back from a low of $56,538 recorded on Friday.

Brandt suggests that Bitcoin might be following a familiar pattern he refers to as the “Hump Slump Bump Dump Pump.” He expressed this in a tweet, indicating that the current price movements might align with this established pattern.

This pattern typically consists of a “Hump,” representing a price increase, followed by a “Slump,” indicating a price decline. The subsequent “Bump” denotes another price rise, which is then followed by a “Dump,” corresponding to a drop in value. Finally, the “Pump” phase represents significant upward movement that often leads to new highs.

### Are Bitcoin Bears Trapped?

Brandt further elaborated that the attempt to form a double top on July 5 was a bear trap, as confirmed by the closing price on July 13. He believes the current situation likely indicates that bearish traders are caught in a trap. A close below $56,000 would, however, invalidate this bullish perspective and serve as a critical level for traders to monitor.

On July 5, Bitcoin attempted a double top formation, a technical pattern typically viewed as bearish, which brought the price down to $53,499. Brandt identified this as a misleading signal, as the price had been in decline leading up to that date.

The positive closing price on July 13 reversed the bearish implications of the double top, leading Brandt to suggest that the upward trajectory could continue. As of now, Bitcoin has risen by 5.05% over the last 24 hours, trading at approximately $62,642.