Veteran trader Peter Brandt identified an unusual Bitcoin chart pattern suggesting the cryptocurrency faces a critical decision point.
The pattern shows a bullish bottom formation with a flat base and minor pullbacks.
This configuration typically precedes strong breakouts when sellers exhaust their market pressure.
Bitcoin (BTC) traded at $89,578 Thursday afternoon, down 2.2% in 24 hours after slipping from an intraday peak of $92,652.
What Happened
If Bitcoin sustains a breakout above $92,000, the setup could trigger a climb to between $94,000 and $95,000 in the short term.
Positive sentiment from broader cryptocurrency markets could extend gains to the psychological $100,000 level.
However, if the pattern fails and Bitcoin breaks below $90,000, the bullish setup would be invalidated.
A breakdown could lead to further downside between $84,000 and $86,000, or in worst-case scenarios to $70,000.
Trading volume declined 18.41% to $43.58 billion amid the consolidation.
Read also: How MicroStrategy's 673k BTC Holdings Changed Bitcoin's Volatility Dynamics
Why It Matters
Bitcoin exchange-traded funds experienced outflows exceeding $243 million, reawakening concerns about cooling institutional demand.
Traders are cautiously reducing leveraged positions, leading to declines in open interest.
Macroeconomic uncertainties including weaker employment data dampened expectations for immediate Federal Reserve rate cuts.
Venture capitalist Tim Draper maintains his $250,000 Bitcoin prediction for 2026.
Bloomberg's Mike McGlone warned Bitcoin faces crash risk if traditional risk assets become unstable.
Read next: What's Delaying America's Crypto Bill Despite 'Close' Bipartisan Progress
