Crypto Markets Shall Face An Inevitable Correction, Warns Peter Brandt
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The banking crisis has certainly brought the US down to its knees but has proved incredibly beneficial for the cryptocurrency industry, as was witnessed by the massive price hikes last week. The weekend was bullish as well, and the star crypto is enjoying an impressive rally.
Notably, the banking crisis began with three regional United States banks: Silvergate Capital, Silicon Valley Bank, and Signature Bank. The crisis escalated when the decades-old multi-billion bank, Credit Suisse, announced a merger with UBS group in a deal worth $3.2 billion.
Bitcoin Price Rally
According to our latest crypto price oracles, Bitcoin jumped to a nine-month high of around $28.4k over the weekend after gaining over 25 percent last week. Similarly, top altcoins, including Ethereum, Binance’s BNB, and Solana, joined the weekend’s rally with a double-digit percentage gain.
Despite the recent crypto rally, top analysts think Bitcoin and altcoin markets could soon enter a correction phase and perhaps a multi-quarter consolidation.
#Btc is approaching our target zone which if achieved may be a perfect place to begin gradual #DCA of short positions. Market sentiment is very fragile despite the success of the #CreditSuisse bailout. Banking sector is far from out of the woods yet with more interest rate hikes… https://t.co/dN23E1Ei1A pic.twitter.com/B5qzTjtDK1
— Matthew Dixon – CEO Evai (@mdtrade) March 20, 2023
Peter Brandt Dares Bitcoin CME Traders
With the crypto market having registered high institutional cash inflow, the relationship between digital assets and equities has displayed shared technical knowledge. For the uninitiated, there is an old saying in the forex trading industry that says the market never forgets. As such, the market eventually fills the old gaps left during heightened volatility.
According to veteran trader Peter Brandt, the Bitcoin market is bound to correct following two large gaps left in the daily chart.
“Two huge unfilled gaps. I encourage you hot-shot young guns to go short Bitcoin,” Brandt noted.
Such a correction could send Bitcoin price below $19k and perhaps retest the $16k support level. Moreover, the futures market heavily influences the underlying derivatives market. Nonetheless, the gap could be left unfilled as the Bitcoin market rallied toward $30k and beyond in the near term.
Filed under: Bitcoin - @ March 20, 2023 10:15 am