Seasoned market analyst Peter Brandt is warning Bitcoin traders and investors alike, saying that BTC is poised for a sharp corrective move.
Brandt tells his 636,800 Twitter followers that Bitcoin has broken down from crucial diagonal support that has kept BTC afloat for the first few months of 2022.
[adinserter block="1"]“The completion of a bear channel typically results in a decline equal to the width of the channel, or in this case a hard test of $32,000 or so – my guess is $28,000
This does NOT make me a hater BTC.”
At time of writing, Bitcoin is trading at $38,605, nearly 40% away from Brandt’s downside target of $28,000.
Brandt is also keeping a close watch on the US dollar index (DXY), which pins the USD against a basket of fiat currencies.
According to Brandt, the DXY looks ripe for a massive breakout after trading in a wide range for about six years.
“Compounding the debt squeeze is the fact that global debt is collateralized in USDs and [DXY] is poised to blow through the ceiling.”
Traders often monitor the performance of the US dollar index to gauge market sentiment as a strong DXY suggests investors are selling risk-on assets like crypto to move to the safety of the dollar.
Last month, widely followed analyst Michaël van de Poppe said that a bearish DXY reversal will ignite a strong rally in the crypto markets.
“Still waiting for this one to turn around, then the party of crypto will begin.”
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