A closely-followed trader who nailed the timing of Bitcoin’s collapse in January 2018 is updating his outlook on the world’s leading cryptocurrency.
Peter Brandt says Bitcoin is in the midst of a parabolic rally, posting a chart that shows BTC soaring above $48,000 as soon as January.
“Bitcoin BTC is advancing in parabolic move from Sep ’20 low.”
Brandt says a significant correction could happen and violate the curve at any point, but he doesn’t think the next retracement will mark the start of a long-term bear market.
“I expect this curve to be violated at some point, but not to produce 80% decline. Green curve is a larger parabolic advance from December 2018 and March 2020 lows. This is the driver of bull market.”
Nearly three years ago, Brandt became famous in the crypto space for highlighting that the violation of a parabolic advance often leads to a massive 80% correction.
General TA rule — violation of parabolic advance leads to 80%+ decline in value. If general rule is followed, BTC should retrace to <$4,000. Note: This Tweet does not make me a hater. pic.twitter.com/jDNI1osinU
— Peter Brandt (@PeterLBrandt) January 22, 2018
Amid the strong demand from institutional players, Brandt names one catalyst that could trigger a Bitcoin sell-off event.
“Possibly tax selling in U.S. after Jan 1.”
When asked whether he believes an altcoin season will play out as BTC corrects, Brandt offered a straightforward response.
“Forget junk coins. Stay focused on the real thing.”
Earlier this month, Brandt predicted that Bitcoin would potentially surge to $100,000 this cycle.
“I’m fully long. In 2018, I set aside a sum of money that I said, ‘This is Bitcoin money.’ That’s fully employed. It hasn’t been fully employed since then. I scale in and scale out but I’m fully committed. There’s no sign for me that Bitcoin won’t keep going up.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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Featured Image: Shutterstock/Olivier Le Moal