Commodity Trader Peter Brandt Cautions Crypto Investors About Bitcoin’s Price Going Lower
Peter Brandt Warns Of More Pain For Crypto Pricing
In the age of instant coffee, not many people have the tenacity needed to patiently wait out things. This only becomes harder when the wait is to see the prices recover for cryptos; it is especially hard to keep calm when those around are losing theirs. In a throwback reminiscent of the “keep calm and carry on” attitude, the experienced commodities broker, Peter Brandt has suggested patience.
The 71-year-old veteran traders claim to fame was his eerily accurate prediction about the price trajectory of Bitcoin. He had predicted that the speculation bubble around Bitcoins price was too large and would soon burst in January, causing the asset to lose more than 80% of its value. When the bull run was at its zenith Mr. Brandt had tweeted ” General TA rule — a violation of parabolic advance leads to 80%+ decline in value. If general rule is followed, BTC should retrace to <$4,000. Note: This Tweet does not make me a hater.”
As a seasoned dealer, this was not the first time he had seen such a price reaction. When asked how he was able to make such an accurate call, he noted that the violent market behavior was not altogether unexpected or unseen.
“I’ve seen that sort of thing take place so many times in the past and they always end the same — prices always fall 80% to 90%.”
As the days of the near past have attested, the man was accurate in this judgment, both at the end of January and ever since. From the lofty heights of $19,000, the prices are currently languishing around the $3600 mark, a fall of about 80% throughout the year. This, he added, might not be the end, as the Crypto market is following patterns seen before. That means there is more pain to come as he expects the prices to drop further.
How Low Is Too Low:
In a recent interview, the astute trader discussed the prospects of the market both in the short and long term. He expects the market to bounce back in the short term, with prices likely to rebound to as high as $4500. However, this he says will be the false dawn before darker days as the price of bitcoin will once again fall.
“This[the current investment climate] is a strong downtrend. There is a tendency in bear markets to retest previous highs.”
He goes on to predict that after the slight price reclaim there will be another massive drop. This new low will be a major test both for the industry and its faithful.Mr. Brandt expects this drop to stabilize at around the 1200 price range, undoubtedly testing the resolve of even the most committed of crypto fans. He foresees a tough phase where
“Crypto won’t have any friends at that point. Even the crypto die-hards might start to think they are done with it.”
To Bear Or Not To Bear
While these predictions certainly inspire little confidence, the trade guru says its mostly gloom but not doom. While the medium-term doesn't look too happy the long-term outlook for Bitcoin is bullish. He reckons if cryptos can survive the low points when it falls to around $1200, a second and more profitable bull run will undoubtedly follow.
While predictability is in short supply in a market laden with continuous fluctuations, the voice of a seasoned veteran must certainly be given due importance. It should also be remembered that the technology has taken small steps as the industry takes a giant leap this year. The constant chatter has forced governments into action and the continues infrastructural and protocol improvements have been heartening. It seems more like a matter of time, once the prices get back in equilibrium, sans the speculative angle, the true functionality of the blockchain will undoubtedly help the asset gain back its value.