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Peter Brandt Believes Bitcoin’s Price is Going Parabolic — Is He Right About BTC?

Last Updated February 7, 2024 2:41 PM
Nikola Lazic
Last Updated February 7, 2024 2:41 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • Trader Peter Brandt forecasts a parabolic Bitcoin run.
  • Analysis identifies repeating market patterns.
  • The outcome depends on market’s support and resistance levels.

Veteran trader Peter Brandt thinks Bitcoin may be on the brink of another significant price increase. Brandt  says there are parallels between current chart patterns and historical market movements. 

Brandt’s analysis ties in with the Elliott Wave Theory’s concept of markets moving in predictable patterns based on investor psychology. It suggests that Bitcoin’s value could soon surge in a parabolic manner.

In this post, we will cover his analysis and provide our insight into the Bitcoin price potential. 

Brandt’s Analysis 

Brandt went on X  to show his Bitcoin chart comparison. His analysis identifies a pattern of market cycles, whimsically named bump, hump, slump, pump, and dump. This pattern has previously preceded major price shifts. 

Brandt's pattern.
Current BTC chart according to Brandt.

This cycle begins with bullish momentum (“bump”), moves into consolidation (“hump”) and falls into a decline (“slump”). After that, it surges upwards in value (“pump”), and finally corrects itself (“dump”). 

If Bitcoin successfully navigates through key support and resistance levels, it could experience substantial growth. However, maintaining these levels means it could remain on the upturn. 

Bradnt's chart
2018 bull market corrections

He compared this pattern to corrective structures in the 2018 bull market, after which BTC started a parabolic rise. So, is this comparison valid?

BTC Price Analysis 

If you’ve been following our Bitcoin price analysis for some time, you know we have called for a correction after a market uptrend from November 21 2022 ended at a $49,000 high on January 11, 2024. 

Daily chart.
Larger correction is expected

Brandt calls this high a hump. The subsequent dump is the final move in his interpretation of the corrective pattern. However, unlike the previous two times we’ve seen these corrections since November 2021, this would likely be a major one. It would represent the first bull market correction that should establish the first macro higher low. 

As the first five-wave impulse ended, we await a larger second wave 2, which would be a deep ABC correction. It could bring Bitcoin down to as low as $27,100. However, the first zone of interest at which the price drop could be stopped is at $34,400 and the next at $30,500. 

These two levels could cause a bounce that would end at a lower high for wave B, only to see another downturn to $27,100. So, what happens at these levels is crucial for future outlooks. 

In conclusion, Brandt’s expectations and understanding of the Bitcoin market appear correct, although we believe that the scale of interpretation isn’t. The price is currently trending up, so if it continues moving past the $44,000 area, it could keep going up, while if it drops and goes below its previous low of $38,500, the scenario we’ve described would look more likely. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

 

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