After several months of a bearish trend, the price of Dogecoin (DOGE) finally exploded last week to everyone’s surprise. The largest memecoin of the cryptocurrency market has seen its value increase by more than 150% in the space of 4 days.
Such a price move naturally caught the attention of market analysts and traders, including veteran Peter Brandt. The latter claimed that the Doogecoin bearer market has come to an end.
The end of the bear market or a false breakout?
On October 30, Peter Brandt shared in a tweet analysis of the Dogecoin, based on a graph that traces the evolution of the cryptocurrency’s price over the past 12 months. He therefore indicated that the memecoin managed to break out of the bearish channel in which it had been since May 2021.
This is called a bear channel, and its upside breach ended the bear market that started at the May 2021 high. $DOGE pic.twitter.com/pZT5yxMje6
— Peter Brandt (@PeterLBrandt) October 30, 2022
This is called a bearish channel, and its breakout has reversed the bear market that started at the $DOGE high May 2021 pic.twitter.com/pZT5yxMje6 — Peter Brandt (@PeterLBrandt) October 30, 2022
The job of the highly experienced trader was quickly picked up by memecoin supporters, who have been smiling again for the past week. The latter hastened to the conclusion that the Dogecoin is at the beginning of a bull market.
However, some analysts suggested it could be a false breakout, due to Elon Musk’s takeover of Twitter. In fact, the price of memecoin began to rise after the operation was formalized, all in the context of the probable integration of Dogecoin as a payment method on Twitter.
Read also: 62% of the Dogecoin hodlers profit on the hope of Twitter integration!
The signal assumption about the start of a bull market may be wrong
After his first foray into the subject, Peter Brandt continued another tweet in which he issued a warning to Dogecoin traders. He urged them not to interpret his comment as announcing a bull market for memecoin.
“A common mistake made by modern traders and miners is to assume that the end of a bear market is automatically a sign that a bull market has begun. This assumption is often wrong. »
However, the trader refrained from predicting the other price movements of the memecoin, leaving everyone free to make their own predictions. More than 24 hours after Peter Brandt’s comments, the price of Dogecoin continues to climb, with the cryptocurrency trading at $0.13 at the time of writing.
