Veteran analyst and technical trader Peter Brandt says Bitcoin (BTC) is likely setting up for a major move after months of quiet consolidation.
In a new YouTube strategy session with trader Tone Vays, Brandt says that Bitcoin’s technicals are suggesting a “washout” to nearly 30% down from current prices.
[adinserter block="1"]Brandt, who predicted Bitcoin’s collapse after its 2017 bull run, says that BTC’s big double top formation last year is a strong foreshadowing of another move down before a reversal.
“If you take the double top that we had in Bitcoin, you take the fact that we penetrated parabola in 2021, you take the descending triangle – all of these things have targets down some $13,000. The double top has a target down there. The descending triangle has a target down there, plus whenever you break a parabola in Bitcoin you have an 80% correction-plus. We’ve had like 75%, 76%. Not that we have to have 80%, but we have had 80%.”
Brandt also says that based on traditional charting techniques, Bitcoin is likely to follow the downward momentum that preceded the current period of consolidation.
“The trend is down in Bitcoin and as a classical chartist I always believe that any period of consolidation or congestion you have will resolve itself in the direction that preceded that congestion. So my bet has got to be that we are most likely going to have one kind of more washout, although it’s not needed. We don’t need to have it, but I certainly wouldn’t want to be betting the farm on Bitcoin at $18,000.”
Brandt says his price prediction would start to fall apart if Bitcoin rallies above $20,000 and gains solid support above the $22,000 level.
“I certainly think that unless Bitcoin can really get up and consolidate above $20,000 again that we could see another leg down… I don’t think that we’ll go to $11,000 or $12,000. I think $13,000 is probably a more real realistic level…
As far as I’m concerned, until Bitcoin can really regain $22,000 and hold it, I don’t see any reason why Bitcoin can’t slip back down to that $13,000.”
At time of writing, Bitcoin is changing hands at $18,112.
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