According to Peter Brandt, Bitcoin may be subjected to an immediate bearish correction, but in the end it will rebound to around $ 6500.
A veteran commodity trader said on Saturday that bitcoin price reached a critical resistance level of around $ 5,745, as shown in the chart below. There was a high probability that the asset was reversed, which means that traders were not sure to buy bitcoins at a higher rate. Therefore, those who bought an asset of around $ 5,000 support may want to quit their positions with a solid profit of $ 745 per Bitcoin — more or less.
The price of bitcoin for the near future – $ 6500 Source: Peter Brandt
However, this does not mean that the current uptrend of Bitcoin may end. Brandt said the asset could move to $ 6,500, as traders buy it from the new session lows. He decreed:
[ads-quote-center cite=”]“THERE IS A CHANCE THAT HE WILL REACH THE TOP, HAVING REACHED HIS TARGET PRICE ON KEY RESISTANCE. CORRECTION MAY OCCUR BEFORE THE NEXT MOVE TO 6500, AND THEN A MORE SIGNIFICANT CORRECTION. ” [/ads-quote-center]
Break the bitcoin forecast
Two key components serve as the basis for Brandt’s forecast of bitcoin prices of $ 6,500. NewsBTC has simplified them, as shown in the graph below. We also added our goal to continue the discussion.
Peter Brandt’s Bitcoin Forecast (Simplified Version) | Source: TradingView.com
Current Resistance
Bitcoin has confirmed a breakthrough above its formation of a bovine flag (orchid) and is now testing $ 5,783 as its nearest resistance level. Brandt highlighted the area for its historical significance. You can see a black horizontal line on the chart above, which In The Near serves as a critical level of support for the downward action of Bitcoin. In July 2018, the asset rolled back briefly from $ 5,783 to start a bullish rise, which eventually reaches the level of $ 8,500. And now the level is again becoming a bitcoin price target – this time with an increase.
If the asset exceeds it, which is accompanied by an increase in volume, the likelihood of achieving it in the amount of $ 6,000 will increase. Psychological In The Near resistance, if broken, can push the price to $ 6,500 even more, at least according to Peter Brandt.
Reversal area
The reversal area is simply a risk assessment tool if we correctly interpret Brandt’s prediction. Indeed, the daily Bitcoin Relative Strength Index is oversold (it is now above 70). This means that an asset can go for a natural bearish correction at any time. If this happens, the price may fall in the direction of a significant area of support, determined by the lower trend line of the bear flag (orchid) and the level of support from November 15, the downward action of 2018 (black dotted, $ 5 196-5 199).
The support zone may see a significant accumulation, which will lead to a rebound of $ 5,783, the nearest resistance. This move will return the In The Near market to the breakout scenario, as discussed in the “Current Resistance” section above.
Over 6500 dollars
Brandt’s target goal of $ 6.500 for Bitcoins was due to the level of significance during the October-November trading session. However, you should also watch out for $ 6,837, another growth target for mid-term bulls. Over the past 12 months, the horizontal dashed line of saffron has been tested a total of fifteen times. He performed equally well in eleven cases, which makes him much stronger than $ 6,500.
In the end, this is food for thought.
