Why Bitcoin Could Revisit $27K, Says Peter Brandt

Bitcoin is back below $40,000 as general market sentiment appears to be turning pessimistic. The first cryptocurrency by market cap has been unable to climb back into the $50,000 area and is moving in a tight margin around its current levels.

Related literature | Bitcoin Tracks US Stock Plunge, Experts Predict Price Level of $37,500

Negative forecasts for Bitcoin and other major cryptocurrencies are on the rise. The uncertainty surrounding the war between Ukraine and Russia and the US Federal Reserve (FED) rate hike appear to be the two main catalysts for global market weakness.

Legendary trader Peter Brandt seems to prefer the short term bearish position. Pseudonymous users shared a Bitcoin price prediction with Brandt, suggesting the cryptocurrency could revisit critical support areas below $30,000.

This could bring the price of BTC to $28,000 or $27,000 in May or June of this year. This prediction matches that of BitMEX CEO Arthur Hayes. He expects BTC and ETH to crash to $30,000 and $2,000 respectively.

As can be seen below, in the chart presented to Brandt, Bitcoin is expected to fall into support territory before resuming its bullish momentum in unknown territory. Over the next few months, the first cryptocurrency could soar by market cap by about $100,000. lit said

Very possible. This is my guess for many months. We shall see.

Source: @CrypoFuture via Twitter

The crypto market is currently correlated with traditional finance. The price of Bitcoin moves along with the Nasdaq 100.

When major technology stocks show weakness, so does the price of BTC. In that sense, the bearish thesis could find more support in the next chart.

Source: Peter Brandt via Twitter

Shared by Brandt, it suggests a bigger drop in major technology stocks that could impact Bitcoin’s price and put additional selling pressure on the crypto market.

Bitcoin could see relief in the short term

However, traders should take any prediction with a grain of salt, especially those coming from Brandt or Hayes. They can change their minds and forecasts if market conditions support them.

In the short term, Bitcoin has managed to stay at current levels despite increased selling pressure. Data from Material Indicators shows significant support below the price.

There are over $33 million in bid orders from $39,000 to $38,000, suggesting that BTC could bounce back from here in the event of future downward price action. On the upside, $41,500 is the potentially largest resistance with around $8 million in orders.

BTC is moving sideways on the 4-hour chart. Source: BTCUSD trading summary

Related literature | Bitcoin Tracks US Stock Plunge, Experts Predict Price Level of $37,500

As NewsBTC reported, the options market is positioning itself for a possible crash. In May and June, call sales increased and demand for put options increased. In other words, traders are turning bearish.

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