U.Today - The cryptocurrency market has been all over the place in the last 24 hours, with liquidations topping $700 million. Bitcoin (BTC) led the decline, dropping to a two-month low of $89,256 before bouncing back above $94,000. But even with this partial recovery, the broader market was still under pressure, with smaller altcoins taking the hardest hit.

Bitcoin's daily chart showed a high wave doji pattern, which is a candlestick formation that highlights indecision and significant volatility on the market. This pattern coincided with a range low sweep and recapture next, suggesting a shift in bias from bearish to bullish.

Veteran trader Peter Brandt emphasised the importance of this development in the context of Bitcoin's current price dynamics.

Before yesterday's drop and recovery, Brandt had been keeping an eye on a head-and-shoulders pattern forming on Bitcoin's chart.

What's next for Bitcoin (BTC)?

From his perspective, there were three possible outcomes. The first was a bearish continuation, which could see the pattern complete and Bitcoin trending toward $76,000. The second was a bear trap, where a brief dip would make bears more confident, but the price would then bounce back hard, causing a short squeeze. The third one was less certain: the current structure might change into a broader pattern, which is harder to predict, and it would not be clearly bullish or bearish.

But yesterday's events have already begun to change this. Bulls moved back above critical levels quite quickly, which makes one think that the first breakdown did not actually happen. Thus, it looks like we may have been fooled by a bear trap, or maybe it was just a warm-up for something else.

Traders are keeping a close eye on Bitcoin at the moment, watching to see if it can go past the $97,500 mark. If it does, it could set the stage for a new surge of growth. If BTC picks up steam again, it might give the whole cryptocurrency market a boost.

This article was originally published on U.Today