Peter Brandt Names Four Reasons Why Bitcoin (BTC) Price Unlikely to Drop Further

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Fri, 01/24/2020 - 19:07
Alex Dovbnya
Trading vet Peter Brandt thinks that Bitcoin (BTC) bulls might not witness another correction
Cover image via www.facebook.com

Trading guru Peter Brandt has just taken to Twitter to comfort the bulls about the recent Bitcoin price correction. Brandt has outlined four reasons why the current level will hold.

Four reasons why

The chart below shows that BTC has broken out of the seven-month falling channel that continues to serve as the cornerstone of the bear narrative. Bitcoin has finally broken above this channel after its impressive 40 percent rally in January.

image by @PeterLBrandt

Brandt says that it is 'normal' to touch the upper boundary of the falling channel. The leading coin has retested the 18-day moving average (DMA) without triggering the three-day trailing stop rule. 

Meanwhile, despite its recent pullback, BTC hasn't touched the $8,100 level, which was the Jan. 14 low.

John Bollinger agrees

John Bollinger, another trading legend who created the widely used Bollinger Bands (BBs) indicator, tweeted that $8,300 was a 'logical' level for the top cryptocurrency to find new support.

The most recent price drop has put Bitcoin closer to a middle band, signaling consolidation. 

At the time of writing, BTC is trading at $8,418 after reaching an intraday low of $8,236, CoinStats data shows.    

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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