Bitcoin’s 25 percent flash-crash that sent its price back to the $5,500 level was linked to the coronavirus, the ultimate black swan event that sent all global markets into a death spiral.
However, Peter Brandt, a commodity trader with decades of experience, called this price drop long before the advent of the pandemic.
Should have listened to Brandt
If the bulls do not pull off a major comeback before the daily close, March 12, 2020, is on track to become Bitcoin’s worst day since 2013. While traders are trying to wrap their hands around this mammoth-size crash, some of them are now admitting that they should have listened to Brandt.
In September 2019, the legendary trader predicted that BTC could bottom out at $5,500 in February 2020 before starting a new parabolic run. This means that he was just one month shy of his initial forecast.
In late February, he posted an ominous head-and-shoulders formation, which ended up being the harbinger of today's massive drop.
On the ropes
Back in the day, Brandt predicted that BTC could make a moonshot to $50,000 after bottoming out at $5,500. He later raised his 2020 target to $100,000.
However, according to the chartist, BTC is still in the multi-year bear market, and it’s unclear whether he still stands by his bullish predictions.
He is also certain that BTC dropping below $3,200 (the December 2018 bottom) could result in a total capitulation that could be the end of Bitcoin’s story.