With the markets in free fall due to the “black swan” event, veteran trader Peter Brandt believes that the price of Bitcoin could drop by a further 80%.
Bitcoin’s price has dropped below $4,000 today, for the first time since the crypto-winter crash, and a veteran market analyst believes it could have fallen even further.
Cryptomarkets have plummeted following yesterday’s announcement of a travel ban between the U.S. and Europe, and continued volatility in all financial markets.
Veteran trader Peter Brandt-famous for correctly predicting the market’s decline from its historical peak-has tweeted something today that no one wanted to hear in response to a question about Bitcoin’s new “inferior support” as a result of the coronavirus.
Brandt said that if you look at the Bitcoin chart “fairly” the new lower support is potentially “less than $1,000. That’s almost 80% below the current price, which is just under $5,000.
If I interpret the chart without bias, I would say sub $1,000
— Peter Brandt (@PeterLBrandt) March 12, 2020
Brandt is more optimistic than pessimistic
The once-commodities analyst is not skeptical, in fact, he is often more optimistic than pessimistic about the price of Bitcoin, and believes that parabolic increases on the Bitcoin chart could reach a maximum of $140,000.
Brandt also warned of a price peak during the crypto-winter downturn, shortly before the price of Bitcoin doubled in mid-July.
Effects of coronavirus restrictions in cryptomarkets
Bitcoin’s price has dropped from the $5,500 and $5,200 brackets, and even briefly dropped below $4,000 today -close to hitting the 2 year lows again- before bouncing over $1,000 in a matter of minutes.
The prices of altcoins also suffered great losses. At the time of writing, the most notable losers were Ether (ETH), with a 43.06% loss, Bitcoin Cash (BCH), which has fallen 42.85%, and XRP, which is now trading at a multi-year low of $0.13.
Blockchain conferences around the world have also been affected by COVID-19. Italy’s upcoming EDCON has been cancelled, and no new dates have been announced for South Korea’s Nitron 2020 Summit. Meanwhile, the second company to launch Bitcoin futures in the U.S., CME Group, announced that it would close the trading room today (March 13), although trading will continue as usual.