Peter Brandt, a veteran trader, believes that Bitcoin will regain its previous high price of $125.100 this week. But not before one last major correction.
“Either a huge shakeout, which would be confirmed by an ATH quickly within the next week or so,” He acknowledged that there might be an even more dismal outcome.
“Or a violation of the parabola, which every time in the past has produced a 75% price decline. I think the day of the 80% decline is over, but perhaps back to $50-60,000 and test the lower skin of the banana.”
Considerations for traders “long-term risk,” Says an analyst
Crypto market crash on Friday following US President Donald Trump’s announcement that a 100% tax on Chinese goods would be imposed. over $19 billion in liquidations The market is a great place to start.
Bitcoin dropped from $121,000 on Friday to just $102,000.BTCAt the time of this publication, this has increased to $112,400. according CoinMarketCap is a great place to start.
“If anything, this weekend was a reminder you have to be so careful with leverage, and even multiples above 1.5x are dangerous,” Charles Edwards, founder of Capriole Investments, told Cointelegraph.
“They do, and you need to always consider multi-year, long-term risk,” He added. The weekend volatility, he said, is only temporary. He described his view for the weeks ahead as simple. “up.”
Some analysts are still optimistic and cite macroeconomic indicators as signs that new capital may flow into cryptocurrency in the next few weeks.
“Buy everything,” Arthur Hayes, co-founder of BitMEX
Arthur Hayes is the co-founder and CEO of BitMEX said In an X message on Tuesday, Powell said that the US Federal Reserve Chairman Jerome Powell had signalled that quantitative tightening would be taking place. “is over.”
“Back up the… truck and buy everything,” Hayes said.
Crypto is a bull for quantitative easing as it encourages the banking system to lend more. makes borrowing cheaper Interest rates are lower for both businesses and consumers.
Related: Bitcoin price reclaims key level as traders say $150K BTC still in play
Swyftx Lead analyst Pav Hundal said to Cointelegraph that Tuesday. “the fundamental economic data is the big story for Bitcoin right now.”
“Inflation is facing a double whammy at the moment from lower oil prices and demand, and at the same time, the US labor market is showing signs of distress,” Hundal stated that US inflation had reached 2,90% in August, its highest level since the beginning of January.
“The Fed has a mandate to target full employment, and it all just feels inevitable that we’ll see further rate cuts this month. This is a goldilocks zone for Bitcoin,” He said.
Recently, Lyn Alden, a macroeconomist at the University of Pennsylvania’s Lyn Alden Institute said On a podcast, she leans “toward this next quarter being probably pretty favorable” Bitcoin.
Magazine: Review: The Devil Takes Bitcoin, a wild history of Mt. Gox and Silk Road
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Source: cointelegraph.com
