A renowned technical analyst weights on Bitcoin’s path to $100,000
Peter Brandt, a 45-years trading veteran, shared a BitcoinLive’s public post where he talks concerning the various methods that Bitcoin might absorb the longer term. The noted analyst believes that from a long-term perspective, the flagship cryptocurrency remains the same. it's in a very “historic bull trend” which will be seen supporting a sequence of higher highs and better lows.
“I believe in the long term narrative of Bitcoin. Bitcoin is indeed going to $100,000, if not substantially more. Based not only on what I understand to be the fundamentals, but also what I see to be the overall classical chart context of the market.”
The chief executive officer at factor LLC maintains that Bitcoin can seemingly rebound from the lower boundary of the multi-month descending parallel channel that's developing on its 1-day chart.
This technical pattern began to make on June 26 when BTC peaked at nearly $14,000. Since then, when the pioneer cryptocurrency hits the bottom of the channel, it bounces off to the center or the highest. But, once it hits the highest of the channel, it falls back to the middle of the bottom.
Now that Bitcoin is trading around the bottom of the channel, Brandt argues that a bottom is “imminent.” And, BTC might shortly flee of the channel in an upward direction to start a brand new parabolic part. Such a bullish impulse would take it to “attack” the incomparable high of 2017 and “slice” decisively through it.
Despite the optimistic outlook, the analyst explained that if the lower boundary of the channel isn't able to hold, then Bitcoin would be certain for a further downward push.
Capitulation will happen
Brandt believes that Bitcoin’s price action is characterized by a series of parabolic movements since 2011. whenever a parabola is “broken or desecrated,” the market tends to decline for a minimum of 12-months from high to low. These violations end in 80 % corrections measured from the height to the lowest.
Under this premise, the author of Diary of a professional commodity trader assumes that since Bitcoin recently desecrated its fourth parabola, it might retrace to a minimum of $5,324. this may represent an 80 % correction and can mark rock bottom of the recent advance. based on the very fact that BTC takes “12-months from high to low,” the bottom would likely occur around July 2020, triggering a “massive capitulation by crypto bulls.”
The trading veteran guaranteed that if Bitcoin closes below the lower boundary of the descending parallel channel, 90 percent of these people who claim that they're in this market forever can give up. except for him, there's a substantial significance to the Dec 2018 low of $3,215. If BTC moves below this indicator, “decisively,” that's once Brandt can capitulate.
Brandt concluded by stating that he cannot predict which of the two scenarios would take place first. But, it is time to “wait and see” what is going to happen to Bitcoin. Based on the possibilities, the market will get set up for symmetric trades.