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Legendary trader Peter Brandt highlights Bitcoin’s main problem
Armani Shirinyan
A veteran trader has noticed a trend that could become a problem for the future trend
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Peter Brandt has identified a bearish trend that we are seeing exclusively in this marketDigital gold has gradually lost its value despite being on the rise, but the worst thing is the extent of the correction we are seeing right now. Now.
Renowned for his accurate forecasts and deep understanding of the market, Brandt noted that the current correction in Bitcoin should be of concern to investors. The 200 EMA, which has historically served as a reliable support line, has been broken by the cryptocurrency, which has lost a significant amount of ground. This breach raises the possibility that a more significant correction is underway.
Recently, the price of Bitcoin has fallen below $58,000, causing massive market liquidations. Bitcoin is in a downtrend and has not been able to maintain its upward momentum. It is unclear how long this uptrend will last, given the stark contrast between the current market behavior and the bull run we saw earlier in this cycle.
The cryptocurrency market has been affected by this global uncertainty, which has increased volatility and put pressure on sellers. The second major factor that has influenced Bitcoin and other cryptocurrencies is still the massive outflow of funds triggered by the selling pressure of Mt. Gox and the German government. Billions of BTC entered the market with little liquidity, causing the price drop we are witnessing now.
These legal hurdles will likely remain in place, which will put even more pressure on the price of Bitcoin. The third factor contributing to the decline is the lack of new institutional inflows.
Significant institutional investment fueled the previous bull run, pushing Bitcoin to all-time highs. But these investments have slowed in the current cycle, which has worsened the correction. A key test for Bitcoin is the current correction. We could see further declines and perhaps test the lower limits of the uptrend that began in 2022 if the price fails to sustain above key support levels.
About the author
Armani Shirinyan
Arman Shirinyan is a trader, cryptocurrency enthusiast and SMM expert with over four years of experience.
Arman firmly believes that cryptocurrencies and blockchain will be in constant use in the future. Currently, he focuses on news, in-depth articles on crypto projects, and technical analysis of cryptocurrency trading pairs.