Why Bitcoin Could Revisit $27K, Peter Brandt Says

Bitcoin is back below $40,000 as overall market sentiment appears to be pessimistic. The first cryptocurrency by market capitalization was unable to climb back to the $50,000 area and was moving in a narrow range around its current levels.

Related reading | Bitcoin Tracks Falling US Stocks, Experts Predict $37,500 Price Level

The negative outlook for Bitcoin and other larger cryptocurrencies is growing. Uncertainty over the war between Ukraine and Russia, and the US Federal Reserve’s (FED) hike in interest rates appear to be the main catalysts for the global market weakness.

Legendary trader Peter Brandt seems to favor the short-term bearish thesis. Nickname users shared a Bitcoin price prediction with Brandt suggesting that the cryptocurrency could reconsider important support areas below $30,000.

The price of BTC could reach $28,000 or $27,000 as soon as May or June of this year. This prediction matches those of BitMEX CEO Arthur Hayes. He expects BTC and ETH to collapse to $30,000 and $2,000, respectively.

As seen below, in the chart provided to Brandt, Bitcoin will drop to its support area before resuming its bullish momentum in uncharted territory. In the months that followed, the first cryptocurrency in terms of market capitalization could rise by nearly $100,000. Brandt She said:

Very possible. This has been my guess for several months. We’ll see.

Source: CrypoFuture via Twitter

The crypto market is currently associated with traditional finance. Bitcoin price moves in tandem with the NASDAQ 100 index.

When big tech stocks show weakness, so does the price of bitcoin. In this sense, the bearish thesis can find more support in the following chart.

Source: Peter Brandt via Twitter

Brandt suggests a bigger decline in big tech stocks which could affect the bitcoin price and put additional selling pressure on the cryptocurrency market.

Bitcoin could see relief in the short term

However, traders should take any predictions of a particular grain of salt coming from Brandt or Hayes. They can change their opinions and expectations if market conditions support them.

In the short term, Bitcoin has managed to stay at its current levels despite the increased selling pressure. Data from material indicators is showing significant support below the price.

There are more than $33 million in bid requests from $39,000 to $38,000, indicating that BTC could bounce back from here in the event of a future price drop. To the upside, $41,500 stands as the biggest potential resistance with bids around $8 million.

BTC is moving sideways on the 4 hour chart. source: BTCUSD TradingView

Related reading | Bitcoin Tracks Falling US Stocks, Experts Predict $37,500 Price Level

Like NewsBTC mentionedThe options market is preparing for a possible crash. There was a rise in sell calls for the months of May and June and an increase in the demand for put options. In other words, the traders started a downtrend.

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