BTC may drop to $13K according to derivatives trader Peter Brandt who cited a double top technical pattern as a reason for the price predictions so let’s read more today in our Bitcoin news.
The veteran derivatives trader Peter Brandt believes BTC may drop to $13K while in the meantime, the cryptocurrency seems to be at a tipping point and trading above $20K. Brandt is a well-known derivatives trader with 50 years of experience and he is also a popular crypto commentator. He came up with a prediction that the next target for BTC could be around the $13,000 level.
To those that are unaware, the double top is a bearish technical reversal pattern that forms after the asset manages to hit a high price two times and spread with a moderate decline between the two. The pattern is often confirmed once the price drops below a support level equal to the low sitting between the two highs before. The former CEO of Bitmex on the other hand Arthur Hayes speculated that $20,000 is a critical level for Bitcoin.
As far as the charts go, they are not looking good. The critical level for Ethereum is set at $1000 and the crypto came close to breaking this level once. There are also speculations that one of the biggest crypto hedge funds is also facing huge on-chain liqudations at the same levels which could propel further selling pressure.
As recently reported, BTC nears crucial levels near the $20,000 as it extended a 12-week slide amid the weak macroeconomic sentiment and the contagion risk within the market. Lender Celsius paused all withdrawals this week citing extreme marekt conditions and leading to questions about the company’s liquidity. The prominent crypto fund Three Arrows faced the least $400 million in liquidations and lowered its collateral levels by selling key positions from this morning.
However, this was not the case and BTC entered a long negative streak. The crypto closed the next nine weekly candles in the red losing $20,000 in value. It remained near $30,000 for a while but then crashed again on Friday. The weekend brought more pain and as a result, BTC dumped to over $20,000 which became its lowest price point since December 2020. The bearish trend resulted in a massive shift in the investors’ beliefs and the overview of the marekt which is best presented by the BTC Fear and Greed Index shows the overall sentiment by gauging different sorts of data like surveys, volatility, and social media comments.
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