A little bit of pessimism is a healthy perspective, especially when you are keeping pace with the digital assets industry.
After Bitcoin’s momentous surge this month, the past week’s correction of 6 percent has made some bulls in the market quite uneasy, with many fearing a drastic pullback below the key support range of $8100-$7900.
Despite such bearish concerns, however, veteran trader Peter Brandt continues to see more light at the end of the tunnel for Bitcoin.
Source: Twitter
The trader was able to identify four key reasons based on which, he believes Bitcoin would continue to consolidate higher, in spite of recent corrections. Brandt pictured the long-term descending channel and explained that the breach on the upper boundary of the channel is a ‘normal’ situation. He added that the coin also retested the 18-Daily Moving Average (18-DMA) which is a positive sign from a correction point of view.
Bitcoin briefly touched $9000 on 14 January, but the price opened at $8100 on the same day, registering a local low. Brandt claimed that since Bitcoin had not fallen to $8100 yet, this meant that bullish momentum is still evident in the market.
Brandt’s projections caught the attention of other traders in the crypto-market, with Mati Greenspan, Founder of Quantum Economics, agreeing with the strength of Bitcoin’s bounce off current support levels. He stated that the recent rebound off $8200 is a positive signal, something that may have bullish inference going forward.
However, Brandt also highlighted that a change in any of the aforementioned parameters can trigger a major correction in the market, leading to another serious tussle between the bulls and the bears.
As previously reported, Bitcoin recently entered its 3rd-year recovery period after the last ATH in December 2017. The first ATH was back in 2013 when the valuation reached an ATH of $1161 and corrected itself back to below $200. The next ATH arrived after 4 years in December 2017, when the valuation peaked near $20,000.
2020 marked the start of the 3rd year since Bitcoin last reached its ATH. Hence, the probability of a positive scenario for Bitcoin this year is higher than in 2019.
