Veteran Chartist Brandt Rejects Bitcoin Bull Flag Narrative

Veteran trader and classical chartist Peter Brandt has rejected the narrative that Bitcoin’s current multi-month consolidation is a “bull flag.” 

Brandt has cautioned market participants against making up their own charting rules simply to fit a bullish bias.

Charting rules 

Brandt took to X (formerly Twitter) to address the growing chorus of retail traders and analysts who have been labeling BTC’s recent upward-sloping price channel as a classic continuation pattern.

“Meant to be educational here, not insulting, but newbies to price charting have the tendency to make up rules as they go,” Brandt posted.

He has stressed that the definitive mechanics of technical analysis were established decades ago by market pioneers like Richard W. Schabacker (1934) and Robert D. Edwards and John Magee, authors of the 1948 definitive guide Technical Analysis of Stock Trends. Modern commentators might look at Bitcoin’s current chart and see a flag, Brandt noted: “But not the founders of charting, thus not me.”

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According to classical charting principles, a dependable flag or pennant pattern must complete its formation and break out within a strict four-week window.

True flags are characterized by a brief, high-momentum pause (often described as flying at “half-mast”) before a prior aggressive trend resumes. Patterns that stretch into eight or ten weeks may assume the visual shape of a flag, but traders should absolutely not expect them to function like one.

The current market structure shows a choppy, upward-sloping parallel channel that began forming in late February. This specific channel has been grinding along for roughly seven weeks. 

Prolonged channel structures can completely fail to break out (as evidenced by the asset’s prior price action).