As Bitcoin currently stays below the $40,000 resistance, trading at $39,400 at the time of writing, the sentiment around the flagship cryptocurrency has turned bearish in the short term. Despite coming off of the much anticipated Bitcoin conference 2022 in Miami, Florida. The looming prospect of a recession, accompanied by rising inflation, a geopolitical crisis, and a change in monetary policy, continues to fuel additional short-term volatility in the crypto and stock markets. The crypto market has increasingly tracked the stock market in recent months, which makes it even more intertwined with global economic factors. While many experts still believe that Bitcoin will surpass the coveted 100,000 price in the near future, legendary investor Peter Brant believes it’s very possible for a $27K to $28K dip in the short term before a bull run.
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A follower of Brant on Twitter posted a chart asking for Brant’s thoughts on whether the chart was too bullish. The chart suggests Bitcoin could revisit critical areas of support below $30,000 before a bull run. Brandt responded with his opinion, stating it was:
“Very possible. This has been my guess for many months. We will see.”
The chart shows the support below $30,000 occurring around May or June of 2022 before a bull run. In the tweeter thread, another follower of brand Trader Whitebeard commented,
“Peter, I thought you were leaning 28k.”
Brandt responded by saying
“Could go to $27k first.”
Brandt is not the only one who believes Bitcoin can re-test below $30,000 before a bull run. Max Arthur Hayes is the CEO of Bit also shares the same view. He’s recently stated that he expects BTC and ETH to crash to $30,000 and $2,000, respectively.
The crypto market is currently correlated with traditional finances. The price of Bitcoin has been moving in tandem with the Nasdaq 100. Bitcoin’s price has shown weakness when the big stocks show weakness. Brandt supported this theory with a chart he labelled “déja vu.” The chart and basically all of Brandt’s thoughts were preceded by his disclaimer stating that his strong opinions are weakly held and he’s flexible, not dogmatic about anything.
‘An opinion is not a position. A position is not an opinion and a chart is not necessarily my opinion.’
Basically, he’s saying, take his opinion with a grain of salt. Nonetheless, this “déjà vu” chart shared by Brant suggests a bigger drop in big tech equities, which could impact the price of Bitcoin and put additional selling pressure on the crypto market.
But Bitcoin hasn’t sat below the $30 000 resistance since July 21st, 2021, when its trading closed at $29,807 before quickly bouncing back a day later to close at $32,007. The last time bitcoin retested at the $28,000 range was on June 22, 2021, when it traded at $28,901 before recovering to $31,736 the next day.
History shows that the few times bitcoin did retrace below $30,000 in the past year, a quick recovery followed, so if Brant is correct in his analysis, if you’re looking to buy Bitcoin, be ready to pull the trigger. Of course, this is not financial advice and we are not financial advisors. Do your own research before making any investment decisions.
What do you think of Brandt’s analysis? Do you think we’ll re-test below $30 000 in May or June?
[This article is a transcription of a video made by Conor Kenny]
Original video: https://youtu.be/1C4pmDqVhH8 ]