After months of quiet consolidation, veteran analyst and technical trader Peter Brandt believes Bitcoin (BTC) is likely preparing for a significant move.
Brandt claims that technical indicators for Bitcoin point to a “washout” to prices that are nearly 30% lower than current levels in a new YouTube strategy session with trader Tone Vays.
According to Brandt, who correctly predicted Bitcoin’s demise following its 2017 bull run, last year’s large double-top formation foreshadows a further decline before a turnaround.
If you consider the double top we experienced in Bitcoin, the graph we penetrated in 2021, and the descending triangle, all of these things have targets down by about $13,000.There is a target for the double top. There is a target for the descending triangle, and whenever a parabola in bitcoin is broken, there is an additional 80% correction. We’ve got about 75% to 76%. We have had 80%, not because we have to, but because we have.
According to Brandt’s analysis of conventional charting methods, Bitcoin is also likely to continue the downward momentum that came before the current consolidation phase.
The trend for Bitcoin is downward, and as a traditional chartist, he always think that any consolidation or congestion will resolve itself in the direction that came before it. Therefore, even though it’s not necessary, he is going to wager that we will likely have one type of additional washout. Even though we don’t need it, he wouldn’t want to stake everything on Bitcoin at $18,000.
Brandt claims that if Bitcoin rallies above $20,000 and find strong support above the $22,000 level, his price forecast will begin to fail.
He firmly believe that we could witness another leg down unless Bitcoin can really rise and consolidate above $20,000… we won’t likely increase to $11,000 or $12,000. He believes that $13,000 is probably a more realistic threshold.
He doesn’t see any reason why Bitcoin can’t drop back down to that $13,000 level until it can actually regain $22,000 and hold it.
At the time of writing, one bitcoin is worth $18,112.
