For the first time in over a year, Bitcoin's price has slipped below $ 4,000.
According to Peter Brandt (well-known analyst) we could witness further contractions.
Cryptocurrency markets have been falling since the United States suspended all flights from Europe: the news has also dealt a blow to the traditional stock exchange.
Veteran trader Peter Brandt, who became famous for correctly predicting the crash of cryptocurrencies after the boom in late 2017, today expressed a strongly bearish view.
Brandt said that if you look at the Bitcoin chart impartially, the lowest point of the cryptocurrency could be under $ 1,000.
It would be a contraction of over 80% compared to current levels:
"If I interpret the chart without partiality, I would say [that the bottom is positioned] under $ 1,000."
Brandt is a Bitcoin supporter
This is a rather unexpected forecast by Brandt since he is a staunch supporter of cryptocurrencies and in particular of Bitcoin: in his opinion, in fact, in the future we will see an impressive growth in BTC that will bring the price to $ 140,000.
Brandt had also correctly announced the end of the crypto winter: shortly after its forecast, in mid-July, the Bitcoin price had doubled.
The effects of coronavirus on crypto and stock
Today, Bitcoin broke support at $ 5,500 and $ 5,200, temporarily hitting a low of $ 3,782, which is one of the lowest values in the past two years.
The performance of the other cryptocurrencies is also very bad. The price of Ether eum (ETH) has fallen by 24%, while that of Bitcoin Cash (BCH) by 28%, Ripple (XRP) has returned to $ 0.15, among the lowest values in recent years.
The fear of coronavirus is also damaging traditional stock markets, in fact recently the Chicago Mercantile Exchange (CME), the most important exchange of derivative products in the world, has announced the suspension of all trading activities:
"No cases of coronavirus have been reported on the trading floor or in the Chicago Board of Trade building. The reopening of the trading floor will be assessed on the basis of future medical indications on the coronavirus."
In short, dark times, the only advice I feel I can give (as always) is not to make impulsive choices since the value can go up but it can also go down even more, and don't invest more than you are willing to lose.
Thanks for reading and see you soon!
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