Bitcoin Could Plunge Below $50,000 Amid Market Volatility, Warns Trader Peter Brandt
Summary:
Prominent trader Peter Brandt warns Bitcoin could fall below $50,000 if the current bid support fails. With failure to break the $70,000 mark leading to a return of market volatility, Brandt suggests that deadly lows may be on the horizon. However, some market observers highlight that Bitcoin whales have ramped up their BTC holdings at recent prices, indicating a more bullish trend. Please note, investing in Bitcoin does incorporate risk, making independent research extremely important.
Renowned trader Peter Brandt has cautioned that Bitcoin (BTC) could plunge under $50,000 should the remaining bid support fail, as suggested by recent analysis. Making his views known on a popular social media platform on June 14, Brandt's thoughts served as a serious consideration for BTC enthusiasts. Experts are divided over the future of Bitcoin, which is currently valued at $67,000. The recent fruitless attempt at a BTC price surge has given rise to disappointment.
Despite touching $70,000 earlier in the week, BTC/USD failed again to break out from its existing trading confines, which has been in place for a number of weeks. Consequently, the market reverted back to its familiar territory, regardless of a volatility spike prompted by US inflation data. Brandt hasn't ruled out the possibility that BTC could face new long-term lows.
Brandt shared that often, "the most obvious interpretations of a chart work out", but also noted that "most of the time the charts morph," referring to the BTC/USD situation as a "chart of interest." He stated too that breaking through the $65,000 mark would lead the market to $60,000, whereas overcoming $60,000 could result in a tumble to $48,000.
Bitcoin was last priced under $50,000 in mid-February, a month prior to reaching a record high of $73,800. This record has now become a major hurdle, with data from trading suite DecenTrader highlighting the significant liquidity at that mark and beyond. Popular trader Skew acknowledged the high volume of ask depth around $70k and above, suggesting that a fresh narrative might be needed to bid past that point.
However, not everyone is convinced that a downward trend is impending. Some market watchers have noticed that Bitcoin whales have considerably increased their BTC exposure at current price points. Prolific entities with holdings of at least 1,000 BTC are experiencing near record highs this week.
Willy Woo, the brains behind on-chain data resource Woobull, declared this a bullish sign in a social media response, stating that bull market FOMO typically kicks in when large-scale holders begin to sell during price rallies. Quinten, a crypto investor and YouTuber, cited data from on-chain analytics platform CryptoQuant, which displayed whale purchases at $1.3 billion.
Please note, this article doesn't offer investment advice or recommendations. Every investment and trading move incorporates risk, and conducting independent research is strongly advised.
Published At
6/14/2024 12:05:00 PM
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