Legendary trader Peter Brandt has predicted that Bitcoin could reach $200,000-$250,000 during the next bull market.
From a mathematical point of view, exponential decay usually refers to something decreasing rapidly at first and then more slowly over time.
When it comes to Bitcoin, the subsequent price retracement tends to be smaller in proportional terms after each cycle, even though absolute prices are higher.
Whether one likes this historical pattern or not, these cyclical behaviors are part of BTC’s market structure. Traders and investors must plan around it, as the legendary commodity trader implies.
Is $40K next?
On Monday, Bitcoin experienced a sharp drop, falling from around $91,000–$92,000 to lows below $86,000.
This erased over $200 billion from the total crypto market cap in hours, triggering up to $791 million in liquidations (mostly long positions).
As reported by U.Today, the cryptocurrency dropped sharply lower after Asia's open brought fresh pressure from the Bank of Japan's (BOJ) surprise yield spike on 10-year JGBs (highest since 2008 at 1.2%). This hawkishness is not going to bode well for risk asserts of the likes of Bitcoin.
At the same time, People's Bank of China (PBOC) reiterated its crypto ban, warning on "illegal" stablecoin use.
Responding to the flash-crash, Brandt suggested that Bitcoin clips potentially bottom out around the $40,000 level.
The commodity trader believes that Bitcoin’s previous recovery was merely a dead cat bounce instead of an actual recovery.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team