Bitcoin (BTC) recently dropped to its intraday low of $8,873 at 16:17 UTC on the Gemini exchange. However, its 14 percent rout might that took place over the last two weeks might be only the start of a real massacre.
Trading vet Peter Brandt has just posted a chart, which shows that BTC has already completed a bearish head-and-shoulders pattern on its daily chart.
Such a formation is considered to be a harbinger of a bullish-to-bearish reversal. That means that BTC might not be even close to reaching the bottom of this painful correction.
The writing was on the wall
According to Brandt, the fact that the BTC price tanked in tandem with the US stocks while gold was rallying was a doomy signal. As reported by U.Today, the store-of-value narrative that is pushed by Bitcoin proponents is falling apart because of how 'digital gold' reacted to the coronavirus rattling global markets.
Now that the US equities are in the midst of a relief rally (the Dow is up by more than 400 points at press time), it remains to be seen whether the bulls will manage to take hold of the cryptocurrency market after days of bearish price action.
On the way to $100,000?
Back in December, Brandt predicted that the price of Bitcoin (BTC) could witness a moonshot to $100,000 after breaking out of its six-month bear channel. This is exactly what BTC did in January, and the trader considered it to be one of the reasons why he didn't expect it to drop lower.
Now that the bears are aggressively seizing back control, it's unclear whether his aforementioned prediction still stands.
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