‘Negative’ Bitcoin daily chart means bulls must defend $29K

There’s not much to be cheerful about when it comes to short-term BTC price action, the famous trader cautions.

Bitcoin (BTC) needs to stay above $29,000 to preserve the bullish case in the short term, famous trader Peter Brandt has warned.

In a tweet on July 1, Brandt, well known for his shrewd BTC price calls in recent years, warned that the onus was on bulls to show Bitcoin’s strength.

Brandt: Bitcoin daily performance “negative”

BTC/USD lost around 5% on Thursday, erasing more and more of its previous gains even as many on-chain indicators flipped bullish.

For Brandt, lower timeframes showed little optimism, and a shake-up was now necessary to disrupt the negative tone.

“The 5-week rectangle continues to form. The daily chart is decidedly negative,” he commented alongside an annotated price chart.

“The burden of proof is on the bulls unless they can keep $BTC above $29,000.”

*Peter Brandt’s BTC/USD annotated chart. Source: Peter Brandt/ Twitter*

That level would still be higher than that to which Bitcoin dipped last week, with the current local bottom at $28,600 on Bitstamp.

Violation of this floor opens up ground towards the previous multi-year high of $20,000, various sources have warned.

Bitcoiners are nonetheless at odds over what could happen in terms of bearish near-term price performance.

On Wednesday, analyst John Bollinger, creator of the Bollinger Bands, eyed $31,000 as the lowest of three “logical” levels for BTC/USD. Some responses argued that such levels would not be revisited based on recent behavior.

Bollinger revealed he was also watching $35-36,000 and $41,000.

“So far they have been important milestones,” he said.

A painful price range

Bitcoin nonetheless conformed to predictions over its likely daily bounce level on Thursday.

As Cointelegraph reported, a crucial zone to hold for traders is between $32,300 and $33,000, with BTC/USD holding at the upper end of that area.

Lower prices continue to rattle sentiment, even among longtime market participants. BTC/USD is now as far away from its stock-to-flow target as it was in January 2019, just after the pit of the 2018 bear market. According to the popular price forecasting model, Bitcoin should cost almost $78,000 this week.

Given the events in China, however, many argue that such price suppression is itself a logical outcome.

“June 2021 brought the most aggressive sovereign assault on Bitcoin ever,” Travis Kling, head of crypto hedge fund Ikigai, said this week.