Peter Brandt, a well-known trader with almost 50 years of experience, predicts a potential reversal of bitcoin, after which the rate could fall below $30,000.
For his forecast, he used a fairly common pattern that bitcoin has been forming since mid-February. As Brandt suggests, the end of a channel usually results in a decline equal to the width of the channel.
Completion of a bearish channel usually results in a decline equal to the width of the channel, or in this case, a hard test at or near the $32,000 level. My guess is $28,000.
My prediction does NOT make me an opponent of BTC.
According to BTC’s daily chart, the cryptocurrency has already moved out of the channel and is now in free-fall as no significant support zones have formed on the way down. In the meantime, some traders and investors are betting on a reversal around the $35,000 level.
Brandt chose $28,000 for a reason, as this is the price that will be reached after a decline equal to the range in which bitcoin moved previously.
Unfortunately, bitcoin remains in a downtrend after climbing to $47,000, though it added 1.1% on the evening of May 1 and rose to $38,500.