While many Bitcoin investors feel that the continued sell-off offers more opportunities to collect at cheaper prices, veteran chartist Peter Brandt warned traders against catching a falling knife in a recent tweet.
According to Peter Brandt, falling Bitcoin is not held!
The legendary commodity trader, who started his career in 1976, says it’s not wise to add more on a losing trade. To support his argument, he points out that after the price of the precious metal reached $50.35 in 1980 and began to decline rapidly, many people were drawn to buy silver cheaper. Unfortunately for bottom buyers, the price continued to drop as low as $3.65. On March 27, 1980, silver fell from $21.62 to $10.80.
Bitcoin is currently down 40% from its record high, but the leading cryptocurrency has suffered much more severe drops in previous bear markets. In 2018, Bitcoin lost more than 70% during a nightmarish bear market. Of course, Peter Brandt states that he doesn’t believe the market conditions are the same. After all, there was an obvious reason for the silver collapse: Nelson Bunker and William Herbert Hunt, heirs to American oil giant HL Hunt, had to dump their massive holdings due to new COMEX limits after aggressively buying the metal in the 1980s.
Future price action with Bitcoin is highly unpredictable, but the general market consensus is that the cryptocurrency will suffer from rising interest rates in the US. cryptocoin.com As we reported, former BitMEX CEO Arthur Hayes predicts the crypto market will be crushed by the hawkish Federal Reserve unless inflation concerns start to become a priority before the November election in the US. Because the Fed is expected to end its bond buying in March, putting an end to the ‘money printing’ narrative.
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