U.Today - A fake Bitcoin ETF announcement led to a sudden surge in Bitcoin's price to $48,000, which just as quickly plummeted to $45,000 as the truth came to light. Peter Brandt shared a chart with a yet unseen "pattern" dedicated to SEC Chair Gery Gensler.
Brandt's chart, humorously labeled "The Gensler Grunt," shows a stark candlestick formation that characterizes the wild event. The pattern indicates a significant sell-off following the peak, as traders realized the ETF approval announcement was a hoax. What stands out in Brandt's analysis is the market's knee-jerk reaction to the news, and the following correction aligns with the classic "buy the rumor, sell the news" behavior.
From a technical standpoint, the chart reflects local strengths and weaknesses of Bitcoin. Before the surge, Bitcoin was showing a consolidation pattern, trading sideways as the market sought direction. The abrupt spike, followed by an equally rapid decline, illustrates the fragility of the current market sentiment, heavily influenced by news and rumors.
The "pattern" depicted by Brandt can be seen as a short-term bullish trap, where early buyers anticipating a positive outcome from the fake news were caught off guard by the sudden reversal. This could indicate weakness on the market, as there was not enough bullish momentum to maintain higher price levels once the fake announcement was debunked.
What this chart and Brandt's interpretation suggest is that Bitcoin is yet to be truly tested. The quick recovery from the dip shows resilience, but the inability to hold onto the gains suggests caution. Traders should be wary of the market's current sensitivity to news, which could lead to overreactions in both directions.
Despite the joking nature of the tweet, it accurately reflects the entire situation and how it was resolved. However, investors and traders should view the provided chart with a bit of irony and avoid making any serious investment decisions based on it.