The veteran trader, who accurately predicted Bitcoin’s 2018 decline, has issued a fresh warning that a serious correction for Bitcoin is imminent.
Veteran market analyst Peter Brandt told his 651,800 Twitter followers that Bitcoin needs to retrace its May 31 high of $32,000 to avoid the risk of a massive capitulation. told. Capitulation refers to a period of strong selling activity in which investors give up their positions and sell their holdings as quickly as possible.
“If Bitcoin (BTC) does not close above the May 31 high, this chart could become a textbook character of the famous ‘Drano’ chart pattern.”
Looking at Brandt’s chart, it looks like Bitcoin has broken through a major horizontal channel and accordingly the next reliable support on the weekly timeframe is around the $12,700 target.
At the time of writing, Bitcoin is down over 12% in the last 24 hours to trade at $22,311. A move to Brandt’s target shows over 40% downside risk for BTC. Brandt also says he agrees with the idea that a liquidation is possible. However, he still believes that in the long run, the Bitcoin price will reach an all-time high.
“I don’t think we’re going to hit an all-time high until early 2024, but by then we’ll be in a huge uptrend.”
The experienced trader also follows the US dollar index closely. The trader’s prediction in this direction is as follows:
“The US dollar could be ready for a big run. If $106 is crossed, the chart target will be $119.”
Some traders rely on the US dollar index to gauge investor sentiment. A strong USD indicates investors are selling risky assets such as stocks and Bitcoin in flight to the safety of the US dollar.
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.