Bitcoin’s ‘Shooting Star’ Pattern Raises Red Flag, Peter Brandt Backs It

A recently emerged Bitcoin (BTC) price prediction has the crypto community worried as it points to a “shooting star” candle on Bitcoin’s weekly chart, which could signal a bearish sentiment. The analysis shows that this candle has a big upper wick, which could mean that Bitcoin is about to reverse direction as it trades around its historical high.

This “shooting star” pattern, which often shows up when prices hit resistance levels, suggests that buying momentum might be slowing down, with selling pressure increasing.

So, in technical analysis, a shooting star shows up when an asset’s price opens, climbs sharply, and then retraces to close near its opening level, leaving a big wick at the top. This formation often shows up when buyers can’t push the price up, facing resistance that can signal a flush downwards.

What Do Shooting Stars Have In Common?

This last weekly Bitcoin Shooting Star has quite the large wick at the top.

Maybe Bitcoin Investors will shrug this off as just an “Unimportant” technical Signal. https://t.co/MMunb8UUwp pic.twitter.com/yJCTqFRPGr

— SRSrocco Report (@SRSroccoReport) November 4, 2024

The latest shooting star pattern formed last week as Bitcoin tried to beat its March high but fell short by less than one percent, making people wonder if the current rally is as strong as it seems.

Legendary trader weighs in

This cautious outlook is also supported by the fact that renowned trader and Bitcoin enthusiast Peter Brandt recently reposted this prediction on his social media. Previously he said that for a real Bitcoin breakout to happen, the price would have to close above $76,000 per BTC on a daily chart and be confirmed with a weekly close on Sunday at midnight.

Concluding, the rise in bearish signals around previous high points suggests that Bitcoin may need to consolidate further before any sustainable rally can take place.

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