U.Today - Peter Brandt, who is considered a legend in the financial markets with over 50 years of experience, has issued a new outlook on the price of the leading cryptocurrency, Bitcoin (BTC).
Needless to say, the last few days have been rough for BTC enthusiasts, as the price once again lost its six-figure valuation, and amid the worst stock market drop since September, crashed to as low as $94,500, losing over 6.5% in just three recent days. We are talking about one of the largest assets in the world, with a market capitalization of nearly $2 trillion.
In his latest outlook, Brandt talked about how price charts are always changing. He mentioned that patterns shift depending on the time frame, whether intraday, daily or monthly. The main trend for Bitcoin is still up, but Brandt said that the current daily charts are showing a possible head-and-shoulders pattern. If that happens, it could lead to more price drops, maybe even down to $73,000.
But, as with any technical analysis, there is a lot of uncertainty. While chart patterns can spot potential market opportunities, they are not always right. So, while there is a chance that the current pattern could change into something else, which might keep the price from going down too much, there is also a chance that it could keep going down.
As can be seen on a chart Brandt attached to the post, Bitcoin’s 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 chart of Bitcoin to Purchasing Power of the Consumer Dollar in US City Average (CUUR0000SA0R) reflects the upward trajectory for the leading cryptocurrency. Bitcoin outperforming this measure signals a divergence between its value trajectory and the eroding purchasing power of the dollar.