Legendary trader Peter Brandt—who correctly called the top in January 2018—believes that Bitcoin is forming a similar structure right now, according to his recent tweet.
The veteran chartist claims that he will stop tweeting about crypto “for a month or so,” warning that some of his followers will be “experiencing pain”:
Through 46 years as a trader I have suffered through some tough trades. I know what it is like to worship at the Porcelain alter. I am not w/o feelings and will discontinue Tweeting about cryptos for a month or so knowing some of you are experiencing pain.
$16,000 could be on the cards
Puru Saxena, the founder of Puru Saxena Wealth Management, has also noted that the Bitcoin bubble “seems to be popping.”
He identifies the 200-week EMA as “the historical support,” which is currently “long way down” at $16,000.
Bitcoin is most oversold since March 2020
The leading cryptocurrency plunged to $40,127, the lowest level since Feb. 8. It is currently down 38 percent from its Apr. 14 all-time high of $64,895.
As pointed out by crypto trader Scott Melker, the relative strength index (RSI) has closed oversold on the daily chart for the first time since March 2020.
The most recent rout is largely attributed to Tesla CEO Elon Musk turning his back on Bitcoin last week.