Trader Peter Brandt has posted a Dogecoin chart with a Head & Shoulders pattern forming on it – that usually signifies a reverse in the direction of the asset’s movement.
Legendary commodity trader Peter Brandt, who has been in the business since the 1970s, has taken to Twitter to share a Dogecoin screenshot.
In the screenshot, the meme-coin is forming a reversal H&S pattern. However, he warns that once this pattern is completed, downward movement is just one of the options that will not necessarily occur.
Is DOGE about to continue moving downwards?
Peter Brandt has shared a DOGE/Tether chart from Binance, marking the Head & Shoulders pattern on it so that it is clearly visible.
He realizes that his tweet may attract indignation from the Dogecoin Army and trolls leaving comments, so he invited the trolls to go ahead.
The Head & Shoulders pattern can signify a reversal in the trend both ways, but here it is showing a reversal to the South.
— Peter Brandt (@PeterLBrandt) July 8, 2021
However, the legendary trader warns that patterns do not always work literally. The pattern must be completed first, he wrote in a comment. After that, it can still fail to act, morph or fulfill its implications.
Some users in the comment thread suggested that the pattern looks more like a Descending Triangle, not a Head & Shoulders.
A Descending Triangle is a bearish pattern. It suggests that downside movement is building and a breakdown is in the cards.
Peter Brandt expects Bitcoin may drop below $30,000
On Thursday, July 8, Brandt launched a poll on his Twitter page to collect his followers’ takes on how far Bitcoin may fall when it breaks below the $30,000 level.
Among the options he offered was dropping to the $25,000-$20,000 range, sticking between $25,000 and $20,000 and plunging below the $20,000 mark to the lows where the flagship cryptocurrency remained until December 2020.