- In the wake of contradictory macroeconomic indications and wary market attitude, selling pressure has resurfaced after a short recovery over $114,000.
- Bitcoin’s price chart is starting to resemble the soybean market of the 1950s, when prices peaked and then fell 50% as supply exceeded demand, says seasoned trader Peter Brandt.
Wednesday saw a little increase in bitcoin prices, but they were still at their recent lows. The cryptocurrency market has been recovering from a severe flash collapse that occurred in early October. The cryptocurrency industry has underperformed its riskier counterparts this year, and the risk-off trend in the financial markets as a whole hasn’t helped matters.
After a wild week of trading, Bitcoin’s (BTC) price has refocused investor focus as it continues to dangle below the critical $108,000 support zone. In the wake of contradictory macroeconomic indications and wary market attitude, selling pressure has resurfaced after a short recovery over $114,000.
While bulls hold the key $110,000 support, Bitcoin (BTC) is trading at $108,280, up about 0.49% in the previous 24 hours as per data from CMC. After falling from its $125,000 high earlier this month, the asset has remained dispersed between $107,500 and $113,900, indicating a lack of clarity. As the enthusiasm around “uptober,” the tendency of cryptocurrency markets outperforming in October, faded, broader crypto markets also had a rough month.
Peter Brandt’s Warning
Bitcoin’s price chart is starting to resemble the soybean market of the 1950s, when prices peaked and then fell 50% as supply exceeded demand, says seasoned trader Peter Brandt. Other Bitcoin experts, nevertheless, are certain that the charts will show even more gains in the near future.
Brandt cautioned that Strategy, Michael Saylor’s firm, would be “underwater” if Bitcoin’s fate was to repeat itself. In the last 30 days, the stock price of Strategy (MSTR) has fallen by 10.13% as the net asset values (NAV) of corporate Bitcoin treasuries have seen a precipitous decline.
Brandt went on to say that the crypto community’s long-awaited massive Bitcoin surge would never happen and that the cryptocurrency might instead fall to $60,000 or below.
If the price stays above $108,500 for an extended period of time, it may signal a comeback towards $112,000–$115,000. On the other hand, if it drops below $107,000, it might signal a further decline below the $104,000–$105,000 area, where the 50-day exponential moving average is located.
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