Worried about the state of the crypto market? You’re not alone. After an epic crash that saw Terra stablecoin nosedive and Bitcoin (BTC) plunge below $27,000, investors are desperately searching for the bottom. But don’t despair just yet – veteran commodity trader Peter Brandt has suggested that we may have already seen the worst of it.
Brandt is well-known in the trading community, and he’s no stranger to making bold predictions. Last month, the renowned chartist correctly predicted that Bitcoin was headed to December 2020 lows near $28,000 – and he now believes that we’ve tapped the bottom and are on our way back up.
In a tweet this week, Brandt observed that the $27.000 level could be a local bottom for BTC. He said the massive spike in volume is an indication that traders are capitulating. This is significant because it means that the selling pressure has abated and buyers are starting to emerge.
“This is the type of volume spike that can indicate puke-out capitulation and the beginning of the end of the one-year decline. Can the carnage continue? Anything is possible — and that includes a local bottom. I’ve mentioned 27,000 area as possible low, and that could be $BTC”
This is the type of volume spike that can indicate puke-out capitulation and the beginning of the end of the one-year decline. Can the carnage continue? Anything is possible — and that includes a local bottom. I've mentioned 27,000 area as possible low, and that could be $BTC pic.twitter.com/FnzDn1PHgs
— Peter Brandt (@PeterLBrandt) May 11, 2022
According to Brandt, the controversial Terra stablecoin (UST) meltdown has had ripple effects throughout the crypto community, and Bitcoin hasn’t been spared. As reported by Wallstreetpit, Terra’s LUNA shed nearly 100% of its value in less than a week as UST lost its dollar peg- currently trading around 15 cents.
This crash, which needless to say, was one of the swiftest and most severe crashes in the history of cryptocurrency, shook investor confidence in the stability of digital assets including Bitcoin, causing the apex crypto asset to shed more than 11% of its value in a matter of days.
It should be noted that the crypto meltdown is happening concurrently with a crash in the stock market. Equities have been on a downward trend since the Fed’s decision last week to hike interest rates, which has put pressure on major indexes and caused prices to drop. That said, if you’re feeling nervous about the market, take solace in the fact that based on Brandt’s recent tweet, we may have finally reached rock bottom.
At last check, BTC prices were changing hands at around $30.500, up 4.9% on the day. Market cap: $578 billion, down from $885 billion on April 1.
Disclaimer: The information provided is not trading advice
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