The well-known trader Peter Brandt predicts that Bitcoin (BTC) could stay in the range of 5,500 US dollars for several months before it goes up again.
In light of the recent crash of Bitcoin, which pushed the market-leading crypto currency to an interim low of $6,850, Brandt said on November 21st that a prolonged downturn to $5,500 could be imminent.
Brandt sees downward trend as “cleanup”
This price development would be in contrast to the forecasts of most experts, who predict a significant upswing by May 2020 at the latest, as the so-called “halving” of Bitcoin’s block reward will occur during this period. This halving of the growth rate of the volume in circulation is actually intended to raise the share price noticeably, as has happened in the past, but Brandt believes:
“My forecast of 5,500 US dollars is actually not so far away from the low we are currently at. But I think the duration and the market development until then will surprise some people.”
Brandt sees this supposed price development as an important event to “clean up” the market from Twitter optimists who have artificially raised Bitcoin:
“I’m assuming a corresponding low in July 2020, which would quickly shake these optimists off.”
The well-known trader sees this as a basic prerequisite so that the market-leading crypto currency can possibly climb to a market value of 50,000 US dollars at a later date.
Is the halving going differently than expected?
As already mentioned, Brandt’s forecast contradicts the prevailing opinion among crypto experts. For example, the much-quoted Stock-To-Flow model calculates an average Bitcoin price of USD 8,300 by May 2020.
Following the “halving”, the price should then rise significantly. Crypto-Trader Tone Vays believes that such a climb would be announced in the previous months.
However, Vays fears that Bitcoin could still slide down to 4,500 US dollars at the moment, an opinion shared by statistician Willy Woo.
Since the beginning of the week, Bitcoin has lost more than 15%, a behavior that Woo sees as normal in the future. So he assumes that the market-leading crypto currency will be more and more characterized by volatility. For the moment he sees a clear downward trend.