Bitcoin [BTC] broke $8,500 following yesterday’s massive surge which pushed its market cap over $150 billion for the first time in months. With the king coin sitting pretty and set to break-out over $9,000, many in the community are optimistic. However, some crypto-traders have adopted a more skeptical mindset.
Peter Brandt, the veteran trader, is not among those buoyed by the BTC bulls. The recent climb, which has Bitcoin trading over $8,700 at press time, was referred to as the “FOMO phase of the advance,” by the trader.
He added that the “sold-out crypto bull,” will “capitulate,” stating that it was a matter of “when,” and not if. While many expect Bitcoin to break several imminent resistance levels, Brandt believes that the surge will cause a “sizable correction.” This correction will halt the bulls dead in their advance, preventing them from advancing further, stated Brandt.
The old-school trader’s full tweet read,
“This is the FOMO phase of the advance. Once the majority of sold-out crypto bulls capitulate and chase this rally a more sizable correction will likely occur, stopping out the same bulls, who are chasing this advance.”
Brandt maintains his critical view of Bitcoin and the larger cryptocurrency market, despite the past two months painting a bright picture for the prospects of the decentralized currency world. Since April, the coin’s price has gained by more than $4,500 and its YTD pump has been in excess of 145 percent.
Since concluding a stagnant March, the coin has been breaking resistance after resistance, continuing to do the same despite frauds and hacks hitting prominent exchanges like Bitfinex and Binance which, according to many analysts, would’ve brought down the market during any other period.
One of the main reasons for the sustained price rise is the rush caused by the BTC halving scheduled for May 2020. As historical price movements have suggested, the price of the king coin surges three months to a year prior to the mining rewards deduction.
Brandt’s pessimistic claims should not be dismissed off the bat. Bitcoin did witness two notable corrections, in the middle of this surge; the first beginning on May 16 which shaved over $1,000 in days, and the next on May 22, pulling the price down from $8,000 to under $7,600.
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