TL;DR

Peter Brandt remains bullish on bitcoin with ambitious targets, but alerted about the appearance of a bearish pattern.

Despite optimistic predictions from multiple analysts, technical indicators such as a near-overbought RSI suggest that the assets rally might face short-term resistance.

Watch Out for This Level

Several hours ago, bitcoin (BTC) made history by tapping a new all-time high price of over $112,000. One prominent figure in the crypto industry who has commented on the assets recent performance is Peter Brandt.

The veteran trader spotted the formation of an expanding inverted triangle on BTCs price chart, arguing that it has a higher rate of morphing or mortality than a pattern like the horizontal pennant.

Nonetheless, Brandt remains long on the asset, setting short-term targets of $120,958 and $134,886. Investors, though, should be cautious because, according to the trader, a decline under $107,000 would suggest morphology.

An expanding inverted triangle is a pattern where price fluctuations become wider over time, forming higher highs and lower lows in a megaphone shape. Its generally considered bearish, as it signals market instability and could result in a breakdown.

On the contrary, a horizontal pennant is a consolidation pattern where the assets valuation drifts sideways after a significant move. Its usually viewed as a bullish signal, assuming it follows an upward trend.

Brandt is known as a proponent of the primary cryptocurrency. Just a few weeks ago, he recommended that people make monthly investments and allocate 80% of the capital to SPY (the ETF that tracks the SP 500 Index) and the remaining 20% to BTC.

Other Forecasts

The X user CRYPTOWZRD is also optimistic that BTC could post additional gains in the near future, envisioning a rally to $132,500 based on the potential formation of an inverse head-and-shoulders pattern. KALEO was even more optimistic, predicting a price explosion to $500,000. 

#Bitcoin / $BTC

$500K IS A MAGNET pic.twitter.com/ni2oFVs9hf

Some indicators support the bullish theories. BTCs exchange netflow has been predominantly negative over the last month, signaling a shift from centralized exchanges to self-custody methods, which reduces the immediate selling pressure.

BTC Exchange Netflow, Source: CryptoQuant  On the other hand, the assets Relative Strength Index (RSI) is quite close to the bearish zone of 70. Such readings show that the price has increased too rapidly over a short period of time and might be due for a short-term pullback.

BTC RSI, Source: CryptoWaves