Veteran trader Peter Brandt has warned cryptocurrency investors about the cyclic nature of Bitcoin’s (CRYPTO: BTC) market behavior.
What Happened: Brandt refers to a pattern he denotes as “Hump with a Slump then a Pump and a Dump” (HSPD), suggesting that inexperienced investors often fall victim to this cycle, buying in during the hype of a ‘pump’ only to incur losses when the market “dumps.”
The old “Hump with a Slump then a Pump and a Dump” is back — and this is the price behavior that separates Chumps from their moneyStudy past major bull runs in Bitcoin $BTC and you will discover they were replete with HSPDsThe Chumps FOMO buy the Pump only to puke out their… pic.twitter.com/o23FnSVKAb
— Peter Brandt (@PeterLBrandt) January 28, 2024
“The old “Hump with a Slump then a Pump and a Dump” is back — and this is the price behavior that separates Chumps from their money,” he tweeted.
Brandt urged investors to study Bitcoin’s major bull runs “and you will discover they were replete with HSPDs.”
Bitcoin’s price action cooled over the weekend, hovering around $41,800. The market managed a 5% gain the day before, amidst reports of improving conditions compared to the preceding weeks. Factors such as exchange-traded fund (ETF) outflows, selling pressure from troubled exchanges FTX and Mt. Gox, and the anticipation of the next Bitcoin halving remain key points of discussion among analysts.
Analyst Markus Thielen on Monday predicted BTC to climb above $43,000. In a note to clients, Thielen recommended re-entering long positions once the cryptocurrency passes the $43,000 threshold.
See More: Dogecoin HODLERs Are Beating Shiba Inu With 57% Landing In Profits, IntoTheBlock Data Reveals
Why It Matters: Earlier in September, Brandt reached out to macro expert Raoul Pal with an inquiry about Bitcoin’s possible rally. He asked Pal on X whether the bull market might be stirring. This was followed by Brandt noting several market indicators that could potentially flag a rally.
In August, Brandt said that Bitcoin is currently facing a significant test as it challenges the multi-contact point trendline that originated from the 2023 bottom. He further explained that any movement below the August low could be interpreted as a bearish signal or potentially a bear trap.
Price Action:…
Click Here to Read the Full Original Article at Cryptocurrencies Feed…
