Peter Brandt says $27,000 may be Bitcoin’s local bottom; however, he thinks the asset class may dip further.
Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, has been on a free fall since last week after the Federal Reserve announced an increase in interest rates to mitigate rising inflation in the United States economy.
Based on the massive dip of Bitcoin, Peter Brandt, a veteran futures trader had earlier predicted that the world’s largest cryptocurrency may dip below $28,000 if it fails to hold above $30,000.
His prediction came to pass in less than two days as the top asset class has seen its value dip to a low of $27,300 in the early hours of today.
Following Bitcoin’s fall from its glory days, Brandt, who has commented about the asset class on different occasions, took to Twitter to share a TradingView chart of the cryptocurrency.
He noted that $27,000 may become the local bottom for Bitcoin, adding that the asset class dipping below $28,000 could be the beginning of the end of its one-year decline.
Furthermore, Brandt noted that the surge in Bitcoin volume could suggest a “puke-out capitulation” of traders from the nascent asset class.
“This is the volume spike that can indicate puke-out capitulation and the beginning of the one-year decline,” Brandt added.
Brandt noted that while he believes $27,000 could be the possible low of the top asset class, there is no guarantee that BTC may not dip further.
“Can the carnage continue? Anything is possible — and that includes a local bottom. I’ve mentioned 27,000 areas as possible low, and that could be $BTC,” the veteran futures trader added.
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. I've mentioned 27,000 area as possible low, and that could be $BTC pic.twitter.com/FnzDn1PHgs
— Peter Brandt (@PeterLBrandt) May 11, 2022
Veteran Analysts Fear Imminent Market Capitulation
Similarly, Credible Crypto, a popular crypto analyst on the microblogging platform Twitter feared that Bitcoin may dip further below $28,000 as it would only take a miracle for the asset class to hold above the level.
— Credible Crypto (05.27) (@CredibleCrypto) May 11, 2022
Unfortunately, the analyst’s fears came to pass with Bitcoin dipping below $28,000 in the early hours of the day. At the time of writing, Bitcoin is trading at $27,311, representing a 13.2% dip in the last 24 hours.
Meanwhile, Michaël van de Poppe, the CEO and founder of Eight Global while commenting on the recent state of the cryptocurrency market, which has lost 15.7% in the last 24 hours noted that the market is close to a capitulation.
“Capitulation on the markets. We’re close,” Poppe said.
Capitulation on the markets. We’re close.
— Michaël van de Poppe (@CryptoMichNL) May 11, 2022