By mid-summer Bitcoin “exhausted”. Cryptocurrency is not growing as fast as before. Prior to this, the trader Peter Brandt said that the price of BTC may drop by 80 percent as recently Bitcoin broke parabolic uptrend. Brandt’s opinion is respected in cryptomodule, as he managed with very high accuracy to predict a new local bottom coins in the area of $ 3,000.
The representative of cryptocurrency hedge Fund Mohit Corot considers Peter’s words an exaggeration. He recently said that a break of a parabola on a graph is not always ends with a strong decline of the asset. Who is right?
Not exactly the end of the world
Peter Brandt outlined on the chart of Bitcoin two goals which in the foreseeable future, may drop the price of coins. First $ 2,800. This line would correspond to a drop in cryptocurrency 80 percent of its market price. Second — $ 5,000, that is, correction by 80 percent from beginning bullrun in 2019.
If current parabolic phase is violated, we could expect either an 80% correction of 7-month advance or much smaller correction w/ new definition of parabola w/ shallower slope. $BTC Note possible formation of 2-wk H&S or H&S failure pic.twitter.com/6IF1bHREAv
— Peter Brandt (@PeterLBrandt) July 7, 2019
Perhaps the reversal will happen above. Some experts suggest that the Bitcoin is unlikely to fall below the support of $ 8,000. If so, then investors will have another opportunity to purchase the coins cheaply.
Corot relies on the immediate formation of a new parabola after breaking the old one. In other words, strong drain — not a mandatory consequence of the fall below the key line marked with Brandt on the chart. According to estimates of Analytics, Bitcoin will fall to a maximum of 9100 dollars. Perhaps the recent drain of the cryptocurrency was this fall. So in the end we may never see BTC cheaper than 10 thousand dollars.
Pay ZERO attention to accounts calling doom over break of intermediate
i. parabolic advances and
ii. price channels.
One will break, a new one will form.
We’re in a #Bitcoin bull market?, don’t get shaken out. #stacksats pic.twitter.com/Eu5ffYPDVd
— Mohit Sorout ? (@singhsoro) July 19, 2019
Commentators in the thread of messages of Sorata walked through the technical indicators of the chart. Trader under the name Crypto Hamster noted that the RSI (line indicating the strength of the trend) after the fall of the BTC to $ 9500 fell to its lowest level since February of this year. In other words, the local bearish trend has lost its potential.
See also: trading for beginners: how to use moving averages lines.
Indicator developed by a famous trader Alexander elder (EFI), at the time the dump fell to the lowest level since November of 2018. We will remind, EFI displays the strength of price movements of the asset.
Finally, on a global scale pullback from 14 thousand dollars can be considered quite normal. In previous bull cycles, the Bitcoin price also fell by 30-40 percent, but then still came back to the uptrend. Let’s hope that Bitcoin will updating the historical maximum at the end of this year.
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