A seemingly bullish Bitcoin (BTC) could end up being a trap, according to recent analysis

The largest cryptocurrency by market capitalization has now formed the inverse head-and-shoulders pattern on the daily chart, which is typically believed to be a sign of bullish reversal.

Prominent chartist Peter Brandt has expressed skepticism over a seemingly bullish Bitcoin (BTC) pattern, warning that any future breakout could be a trap.

What Happened: As the largest cryptocurrency by market capitalization continues to form the inverse head-and-shoulders pattern on the daily chart, which is typically a sign of bullish reversal, there is a catch. The pattern that the Bitcoin price is currently developing has a downward-sloping neckline.

Brandt, who has more than four decades of experience as a commodity trader, prefers H&S patterns with horizontal necklines as they are significantly more reliable.

The downward-sloping neckline in the case of Bitcoin suggests that the cryptocurrency's bullish momentum is waning as there is no frantic buying. This could result in any future breakout being a fakeout, with the price plunging back below the pattern's neckline.

"I have a preference for H&S patterns with horizontal necklines—they are considerably more reliable in my experience of more than 40 years trading commodities and 30 years charting. H&S patterns with sloping necklines tend to have follow-through, but not always, and they can have breakouts that are better described as 'flit through.' In the case of Bitcoin, any breakout of the H&S pattern could be the last chance for the bulls to step up, or else we will fall back into the 60-70k range going into April 2nd, where we will see just how much tariff news was already priced in or not."

Top Trader: Prominent trader Josh Olszewicz has also taken note of the bullish pattern on the one-day chart in a recent social media post.

"Last call for the bulls on this iH&S here, else we fall back into the prev range (60-70k) going into April 2nd we'll see just how much tariff news was already priced in...or not"

According to data provided by CoinGecko, Bitcoin is currently trading at $83,091 after losing 0.7% over the past 24 hours. Earlier this Sunday, the cryptocurrency reached an intraday low of $81,769.

The cryptocurrency is struggling to maintain its bullish momentum amid rising global trade tensions, which are placing immense pressure on risk-on assets.

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