Peter Brandt is one of the most respected traders in the cryptocurrency world, and his recent tweet regarding Bitcoin (BTC) has generated quite a bit of buzz.
In his April 30 tweet, the prominent commodity trader asserted that BTC could drop as low as $28,000, citing a key indicator that is currently pointing to a bearish trend. He went on to explain that the completion of a bear channel which has been forming since the middle of Feb. and a pattern typically followed by an equally significant decline in value, is likely to push Bitcoin towards a hard test of the $32.000 level.
The completion of a bear channel typically results in a decline equal to the width of the channel, or in this case a hard test of 32,000 or so — my guess is 28,000
This does NOT make me a hater $BTC pic.twitter.com/tTtuALZvSt
— Peter Brandt (@PeterLBrandt) April 30, 2022
According to Brandt’s chart, the BTC price has broken through the channel’s trendline support. This may be the beginning of a bearish move and might generate a sell signal. Furthermore, the crypto asset lacks immediate support below $35.000. This could very well lead to a significant dump if the bearish sentiment persists. In other words, a break below the $35K area may lead BTC towards $30K level.
It should be noted that Brandt is not just picking $28,000 at random – it seems he’s chosen this price because it represents the level where Bitcoin has fallen in the past. And interestingly, this price seems to be following the broader market trend, particularly with regard to tech stocks and the U.S. market as a whole.
So, although Brandt may not put much faith in predictions about Bitcoin’s future value, he does seem to have a good handle on what drives its current performance.
Whether or not his latest analysis holds true, only time will tell. But one thing is certain – Bitcoin continues to be an unpredictable and exciting investment opportunity that is well worth keeping an eye on.
At last check, BTC prices were changing hands at around $36.000, down less than one percent on the day. Market cap: $685 billion, down from $885 billion on April 1.
Disclaimer: The information provided is not trading advice