Veteran Trader Peter Brandt Projects Further Downside For Bitcoin
Peter Brandt, a trader who correctly predicted Bitcoin’s 2018 meltdown is issuing a fresh warning that a severe correction could be coming for Bitcoin (BTC).
Brandt shared with his 653.3K Twitter followers that BTC must recover its May 31st high of around $32,000 to avoid the risk of a massive capitulation event.
“Unless Bitcoin (BTC) can close above the May 31st high, this chart could become a textbook example of the famed ‘Drano’ chart pattern.”
Unless Bitcoin $BTC can close above the May 31 high this chart could become a textbook example of the famed "Drano" chart pattern pic.twitter.com/X57mDNO5Qu
According to Brandt’s chart, BTC seems to have broken down from a big sideways channel and his next reliable support on the weekly timeframe is around his target at $12,700.
At time of writing, $21,560, down 6% in the last 24 hours. A move to Brandt’s target suggests a downside risk of over 40% for BTC.
The trader also says he agrees with the idea that a purge is possible. However, in the long-term, he still believes that BTC will make a fresh all-time high.
“In my opinion, we will not make a new all-time high until early 2024 but by then we will be in a giant uptrend.”
Brandt is also closely following on the US dollar index, which he says is threatening to take out its long-term resistance at $106.
“The US dollar could be poised for a big run. If $106 is breached, the chart target would become $119.”
Traders and analysts use on the US dollar index to measure investor sentiment. A strong USD usually means that investors are selling risk-on assets like equities and crypto in a flight to the safety of the US dollar.
