PakGazette – Peter Brandt, considered a legend in the financial markets with more than 50 years of experience, has issued a new perspective on the price of the leading cryptocurrency (BTC).
Needless to say, the last few days have been difficult for BTC enthusiasts, as the price once again lost its six-figure valuation and, amid the worst stock market crash since September, plummeted to just $94,500, losing more than 6.5% in just three recent days. We are talking about one of the largest assets in the world, with a market capitalization of almost 2 trillion dollars.
In his latest insight, Brandt talked about how price charts are always changing. He mentioned that the patterns change depending on the time frame, whether intraday, daily or monthly. Bitcoin’s main trend remains bullish, but Brandt said the current daily charts show a possible head and shoulders pattern. If that happens, it could lead to further price drops, perhaps even as low as $73,000.
But, as with any technical analysis, there is a lot of uncertainty. While chart patterns can detect potential market opportunities, they are not always correct. So while there is a chance that the current pattern could change towards something else, which could prevent the price from going too low, there is also a chance that it could continue going down.
As you can see from a chart Brandt attached to the post, Bitcoin price action is really in a bit of a conundrum right now.
On the one hand, a confirmation of the head and shoulders pattern could lead to a further drop to as low as $73,000 per BTC.
On the other hand, the graph of Bitcoin to Consumer Dollar Purchasing Power in US City Average (CUUR0000SA0R) reflects the upward trajectory of the leading cryptocurrency. The fact that Bitcoin surpasses this measure indicates a divergence between its value trajectory and the erosion of the dollar’s purchasing power.
