In a new tweet, commodity trading veteran Peter Brandt opines that the actual price of Bitcoin is more important than any indicator when it comes to determining another pivotal move.
Brandt explains that all indicators are actually derived from price, which makes them purely optional.
Price does not speak every day. Expecting markets to announce every jig and jag is a trap novices fall into. As I view $BTC, there have only been a dozen days in the past 8 years when the market rang bells and whistles.— Peter Brandt (@PeterLBrandt) May 28, 2020
The naked truth
By focusing on the price of a certain asset, the trader will be able to distill all the noise. It is important to observe where the price goes since it can serve as a more powerful signal than any separate indicator.
For instance, if it hits a speed bump after surging to a certain level, it could potentially change the prevailing trend (no matter what was the reason for the occurrence).
With that being said, Brandt makes it clear that he’s not against using derivatives. He simply made a case against applying a lot of indicators that might confuse novice traders.
Recently, the trader also ridiculed an extremely convoluted Bitcoin price chart with Fibonacci circles, which predicted that the price could crash to $1,800 in the second half of 2020.
It is actually hilarious that people post charts like this and expect others to take their predictions seriously— Peter Brandt (@PeterLBrandt) May 6, 2020
Bitcoin isn’t generous on clues
Despite the importance of observing Bitcoin’s price action, staring at the chart every day will hardly give traders any hints about the next move.
Brandt explains that the BTC price doesn’t speak every day, and only rookies expect the price to announce ‘every jig and jag.’
Over the past few years, there have been only ‘a dozen days’ when the Bitcoin market rang ‘bells and whistles’ for those who listened, according to the trader.
Back in April, Brandt tweeted that there was a ‘50 percent’ chance that BTC could skyrocket to $50,000, but it could still end up being a Beanie Baby-like fad.