Peter Brandt believes that this level could be decisive for the asset

Renowned trader predicted bitcoin price to rebound after hitting the $27 000 mark

12.05.2022 - 14:00

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2 min

What’s new? Trader and analyst Peter Brandt sees $27 000 as a local bottom for the bitcoin price, from which a rebound could occur. A surge in trading volumes can be seen on the BTC chart, which indicates capitulation. This process could mean the cessation of further price declines, according to Brandt.

What is capitulation? It is when investors leave the market and sell off an asset at a loss because of a major collapse.

What else does Brandt say? He believes that the possibility of a price decline still remains because the “bearish” trend is quite strong:

“This is the type of volume spike that can indicate puke-out capitulation and the beginning of the end of the one-year decline. Can the carnage continue? Anything is possible — and that includes a local bottom.”

As of May 12, 16:30 Moscow time, bitcoin is trading at $28 613, having lost more than 3,7% of its value per day, according to Binance. In the last 24 hours, the total amount of asset liquidations in the cryptocurrency market has exceeded $978 million, according to Coinglass.

What events happened before? On May 1, Brandt predicted a decline in the price of bitcoin to $28 000. In his view, this was indicated by the pattern that bitcoin had been forming since mid-February. Brandt noted that the completion of a “bear” channel usually leads to a decline equal to its width, and in this case, a drop in price to $32 000 or even $28 000.

The head of the brokerage firm Euro Pacific Capital Inc. Peter Schiff suggested that the price of bitcoin could fall below $10 000 if the rate of the first cryptocurrency continued to decline past the $30 000 mark.

Author:

Tatiana Darda Tatiana Darda

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