Trader: Bitcoin (BTC) Above $4k Is Dead Cat Bounce, Crypto Still In Strong Downtrend
Meet Peter Brandt
Peter Brandt is likely a name you have heard thrown around in the cryptosphere in recent years. Brandt, for those who are unaware, is a commodity markets trader with decades of experience and, a newfound(ish) Bitcoin (BTC). Although the American trader has taken a liking to the flagship cryptocurrency, nearly one year ago, on January 22nd, Brandt called for BTC to pullback drastically, citing a “general [technical analysis] rule.”
At the time, in a tweet that has since garnered 3,300 likes, the chartist explained that after a parabolic advance in markets, an 80%+ decline in value is expected to occur. By the same token, Brandt traced out an 80% decline for BTC, which would see the blockchain-based asset fall to $3,933.
Now, after Brandt has been lambasted, crucified, and excommunicated for his bear call, his forecast has come to fruition. And this hasn’t gone unnoticed. Trader, analyst, and commentator Infamous, who goes by the Twitter handle @infamousXBT, recently posted the tweet below, which seemingly poked fun at the crypto community’s reaction to Brandt’s sub-$4,000 forecast.
Some discussed his call with a bit more skepticism. Bitlord, a “full-time” crypto enthusiast since 2012, claimed that Brandt made a chart depicting BTC heading to $50,000, but deleted it to run with the $4,000 narrative. Ethereum World News is unable to confirm if this is accurate, but this isn’t out of the realm of possibility.
Regardless, at the time of writing, BTC remains below Brandt’s target by $250, deeming his call an undoubted success — in spite of the nuances and caveats.
Bitcoin Remains In “Strong Downtrend,” Yet Crypto Will [Eventually] Get Exciting Again
Now, many months later, Brandt has another prediction for the cryptocurrency market, specifically pertaining to Bitcoin. Speaking with Yahoo Finance, the current CEO of Factor LLC, noted that he doesn’t expect BTC to go “anywhere,” explaining that at best. the asset could reach $4,600 in the near future.
Still, he added that if BTC breaks above $4,000, such a move could likely be classified as a “dead cat bounce,” rather than a long-term trend reversal. A dead cat bounce is, of course, when an asset rallies after a sharp downturn, but falls further afterward. If such a move materializes and BTC breaks under $3,000 in Q1 of 2019, he expects for Bitcoin to continue to $1,200, due to the asset being situated in the midst of a “strong downtrend” channel.
Although he painted a dismal picture for the short-term future of crypto markets, Brandt noted that eventually, he believes “it [will] get exciting again,” but didn’t give any specific timelines for his nebulous call. Still, he maintained the thought process that if $1,200 is breached, BTC will start to experience a loss of its user base, even diehards.
The trader recently sat down with CoinTelegraph to also discuss his expectations for the cryptocurrency market. Interestingly the Factor chief explained that he’s becoming a “long-term buyer and holder of BTC.” However, in an apparent Bitcoin maximalist outburst, Brandt noted that he has “no time” for other “old coins” or macro caps, such as Ethereum (ETH) and XRP.