Veteran crypto trader, Peter Brandt, the man who foretold that the price of Bitcoin would drop by 85 percent earlier in the year, is in the news again and this time, the capitulation of Bitcoin is his new song.
Never a Better Time for Capitulation
In January 2018, Brandt warned that Bitcoin was going towards below $4000 and on December 20, the sudden inversion of the declining price of digital assets across the crypto markets elicited a reaction from him which was expressed in a tweet.
“Anyone want to know why cryptos are rallying hard? …It is called capitulation – at least for (a) time,” he wrote, while releasing a comparison of six major altcoins as well as the annual Bitcoin highs and lows.
In January, he stated that the parabolic rise of Bitcoin would end at $20,000, forecasting at least an 80 percent drop which was a bold call considering the bullish performance of the market at the time.
Is the Current $4,000 Sustainable?
BTC/USD $4104.49 +0.1% has experienced the most unlikely event, and that is a bullish week. After hitting the $3128, a 15-month low, on Sunday, the pair started going higher, regaining a $3500 support and went further to hit $4000 on Thursday.
The previous day, Brandt provided a mid-term update on his predicted future of Bitcoin price, stating that the market would experience less volatility in months to come.
“I really don’t think it’s going anywhere – maybe $4600,” he disclosed to Yahoo! Finance.
“…There is a tendency in bear markets to retest previous highs… but then I think it gets exciting again.”
The 2013 Phantom Highs Still Remain
The 2013 highs were the reference point of Brandt, the previous bull cycle of Bitcoin’s $1300 top which climaxed in a reversal of over 85 percent, just like in 2018.
This appears to be in support of what another trading guru, Tone Vays, said on Sunday. At the same time, a warning came from Brandt saying that a very strong bounce now would bring about a downward action of major proportion, which indicates that the price of Bitcoin could only hit $1200.
“Crypto won’t have any friends at that point,” he further said.
Even stubborn crypto supporters might begin to lose hope in it.
In spite of all the worries, there still exist unhidden commitment to Bitcoin from many sources such as Mike Novogratz of Galaxy Digital, who restated his belief in a Bloomberg interview conducted this week.
“Bitcoin is going to be between $3000 and $6000, and hopefully next year we’ll start to see the move up,” he revealed to the network.
“It’s easy to smash it right now, but if you look at it from a broader perspective, it’s pretty cool.”