Bitcoin may suffer several corrections on its way to $200k, suggests Peter Brandt

 Bitcoin may suffer several corrections on its way to $200k, suggests Peter Brandt

Peter Brandt, veteran trader and author of “Diary of a Professional Commodity Trader,” pointed out that while Bitcoin’s (BTC) price could reach $200,000, history shows that it’s prone to massive corrections of 30% or more.

“In the 2015-2017 bull market in $BTC, there were nine corrections exceeding 30%. Since the Mar 2020 low, there has been only one such correction,” Brandt pointed out, adding, “How many more corrections > 30% will occur before Bitcoin reaches $200,000?”

According to the poll posted by Brandt yesterday, over 60% of over 15,500 respondents believe that there is indeed a high probability that Bitcoin would see from one to six major corrections—more than 30%—before its price reaches $200,000.

At the same time, only 12.2% of respondents said that BTC will suffer seven or more corrections. Another 10.9% are confident that Bitcoin is topping now—which means that BTC is at its highest price point, at least for some time.

Meanwhile, 16.2% of users, perhaps on the more “Bitcoin maximalist” side of the scale, said that they don’t expect any corrections on the way to $200,000 because it’s “moon from here.”

Currently, Bitcoin is trading at around $56,000, down 1.5% on the day, according to crypto metrics platform CoinGecko.

Bitcoin’s price chart. Image: CoinGecko

While some users replied to the poll with skepticism, noting that “the meme 80% correction may be a thing of the past,” it’s hard to argue his suggestion if one to look at the history of Bitcoin—which is still an extremely volatile asset.

Just recently, the coin corrected by over 30% when it dipped from $42,000 on January 8 to around $28,900 on January 22, for example. In this light, it’s not beyond reason to suggest that similar price movements could occur in the future—or not.

Replying to the thread, crypto trader and investor Scott Melker, aka “The Wolf Of All Streets” on Twitter, reiterated that “the big money is not in the buying or selling but in the waiting.”

Echoing this sentiment, Brandt noted that he would be “happy” to buy some more Bitcoin if the crypto’s price corrects by 20% or more.

“I would be a happy buyer on all 20% corrections for now,” Brandt replied to one of the commenters,” he said.

As CryptoSlate reported, Tesla CEO Elon Musk has recently said that only a “fool” wouldn’t look into Bitcoin.

Bitcoin, currently ranked #1 by market cap, is down 6.93% over the past 24 hours. BTC has a market cap of $991.63B with a 24 hour volume of $65.07B.

Bitcoin Price Chart

BTCUSD Chart by TradingView

Like what you see? Subscribe for daily updates.

Source link

Related post