Peter Brandt is a legendary trader of forty years. He went on the record, using his Twiter account, saying that the “parabolic phase” that started on last December could start up an 80 percent correction in the market’s parabolic advance.
He tweeted:
Bitcoin is still under a market correction as it trades under the USD 10,000 support level. According to Mr. Brandt, the market could go even further down from USD 310 billion in capitalization to USD 150. The loss of value would affect altcoins mainly.
The correction in Bitcoin price, if it really were 80 percent would go from USD 3,130 to USD 13,800. That implies a loss of USD 5,000, and it could even be optimistic.
Bitcoin Price Technical Analysis
The technical analysis done by Rosh Rager, a reputed analyst, says that an 80 percent correction would be tragic for most digital currencies, but the USD 8,000 level will be able to stop the market from going down.
Looking at the Fibonacci retracement indicator in the three day period, it becomes apparent that Mr. Rager could be referring to the top 50% to 61.8% Fibonacci retracement zone. It could be a strong support barrier because there’s a lot of demand concentrated around this area.
Bitcoin price already broke the most crucial support cluster around the 38.2 Fibonacci level and the trendline it formed since last March.
Outlook
The market sentiment is bearish for the most part because there are so many selling signals triggered in so many different time frames. Two examples are the MACD crossover on the 3-day chart and the break of the ascending parallel channel on the 1-day chart.
If Mr. Brandt’s bold forecast becomes true and there is an 80 percent correction, that could take Bitcoin’s price under the USD 3,000 level. It could retrace back to USD 8,000, which would be a 40% pullback that, according to historical data, will keep the bullish trend alive and well.
There’s a slight chance that Bitcoin price could enter a consolidation phase between USD 9,700 and USD 13,000. But it all hangs from the currency’s strength to get back over the 100-twelve-hour moving average before the 12-hour candlestick is finished.
So turbulent and uncertain times are ahead for the cryptocurrency market, especially when it comes to Bitcoin. It’s all been peachy since last April, but in crypto, everything can change in just a minute. We’ve seen that happen many times over the previous decade when Bitcoin came online for the first time.
There’s nothing wrong with that. It’s exciting, it’s interesting. It’s also very risky, which is why you have to do research thoroughly before you take positions in the market. So keep an eye out for the new developments in Bitcoin price. It doesn’t have to be as dramatic as forecasted. But we’ll have to see.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.
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