After the latest parabolic run, legendary trader Peter Brandt has shared his take on the potential correction that might accompany Bitcoin (BTC).
In a post on X, Peter Brandt shared that a pullback cannot be ruled out after Bitcoin’s 223% surge since September 11, 2023. As a rule in the financial market, a cool-off period naturally accompanies a bullish surge, which might apply to Bitcoin.
While Peter Brandt is not ruling out the possibility of a correction, he pointed out that such a dip is technically not his prediction.
The Historical “Hump Dump” Movement
Historically, when the price of Bitcoin hit its All-Time High (ATH) of $68,789.63 in November 2021, it dropped as much as 422% to $16,291.22 in November 2022.
In Peter Brandt’s analysis, Bitcoin recorded its “worst closing price decline” of -15.7% from Jan 8 to Jan 22 this year. Per the chart he shared, Bitcoin’s price movement has recorded a “hump slump” and “bump dump” movement since July 2023.
Update on Bitcoin $BTC
On a daily closing price basis, since Sep 11 Bitcoin has advanced 233%. The worst closing price decline was was -15.7% from Jan 8 to Jan 22. I believe a dip below 55,000 would be a buying opportunity, although such a dip is not my prediction. pic.twitter.com/hfqiX1M3gy— Peter Brandt (@PeterLBrandt) March 2, 2024
After the price of Bitcoin peaked at around $31,474 in July last year, it dropped to $25,837 in September. The hump dump movement became prevalent from December 8 to January 26 before Bitcoin skyrocketed to its Year-to-Date (YTD) high of $64,268.81.
Bitcoin is now changing hands for $64,148.78, up 4.12% in 24 hours. The price sufficiently trading above its 50-day and 200-day Moving Averages underscores the bullish momentum it has cemented in both the short and long terms.
Buying Opportunity Target
According to Peter Brandt, any potential retracement in the price of Bitcoin will mark a buying opportunity. He believes that though volatility is still a thing for Bitcoin, all the market will see for now is about 15 – 20% correction.
He said this will mark a buying opportunity if this happens and the Bitcoin price retest $55,000y. Notably, the spot Bitcoin ETF accumulation trend, the halving sentiment, and the supply crunch are likely to keep pushing the price of Bitcoin, even with imminent retracement ahead.
In earlier projections, Brandt noted that he foresees Bitcoin hitting a $200,000 top in this current bull cycle.
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