Veteran stock and derivatives trader Peter Brandt has predicted a further plunge for Bitcoin and Ethereum.
In a series of tweets spanning the last four days, Brandt who mostly bases his decisions on technical analysis and chart patterns posited that Ethereum could lose major support, thus pushing lower. The pundit reached this conclusion after sketching a “POSSIBLE” descending triangle on ETH’s daily chart.
In technical analysis, traders can project how far the price will go once textbook patterns such as the one at hand are validated. Sometimes this is known as a “measured move.”
Elsewhere, although the pundit is yet to give a bear call on Bitcoin, he seemed to agree with Pseudomous Twitter user “Big Cheds” who is on record calling for $12,000 BTC. If Ched’s prediction is anything to go by, Brandt noted that this would be the fourth 80%-plus correction since 2011. It would also “be the first time a correction goes below the previous high peak, which was about $19,900 in 2017,” he added.
In early May, Brandt correctly predicted BTC’s drop to $28,000 after sketching out a bearish channel. While his predictions were based on a measured move using the channel’s width, some believe that a bearish flag pattern could still be at play, potentially sending the price to $12,400.
For Ethereum, which also depicts a similar pattern, this would mean price recoiling to roughly $930.
However, although these predictions remain improbable for some investors given the completely different picture painted by fundamentals, they could still play out eventually, the more reason investors should be prepared for any outcome.
After a nine-week long sell-off which was fired up by global geopolitical tensions, as well as US monetary uncertainties, BTC and ETH prices have remained tucked in a tight range for the past 30 days. While the current state of indecision could also mean heavy accumulation which is good for both cryptocurrencies, it remains to be seen whether price can hold atop their last lines of defense.
As of writing Bitcoin is down 5.18% to $21,297 while Ethereum is trading at $1,116 after a 10.14% plunge in the past 24 hours