Legendary trader Peter Brandt claims that Bitcoin bulls desperately need to reclaim the $117,570 level in order to avoid a “potential” double top.
The leading cryptocurrency is currently changing hands at $111,794 after dipping to an intraday low of $100,381.
Huge sell order
During the weekend, a Bitcoin whale liquidated a total of 24,000 coins that were worth more than $2.7 billion.
It is believed that the massive crash was the key reason why the price of the leading cryptocurrency has now collapsed by $4,000 in mere minutes.
Blockstream CEO Adam Back described this kind of activity as clumsy. “Normally, people with that kind of money would be smarter,” Back said.
Even though some market participants have downplayed the importance of the massive whale move, Brandt insists that it should not be dismissed since it represents supply.
As noted by Brandt, market tops tend to be created by supply or distribution.
Key level for bulls to reclaim
Brandt is convinced that it is crucial for the bulls to reclaim the above-mentioned $117,570 level in order to rule out a possible cycle peak.
Recently, the Bitcoin price dropped below a key support level around $112,210.
The chart shared by Brandt shows that the price of Bitcoin has slipped back into the downward-sloping channel that formed in mid-August.
If the price of the leading cryptocurrency fails to record a breakout, it could potentially face the aforementioned double top, with the two peaks being the high in July and the subsequent high that was logged in mid-August.
Brandt claims that she is neither bearish not bullish on Bitcoin as of now. “Most of you trolls need to know this because you are unable to understand nuance on your own,” he said.