Key Points
- Peter Brandt predicts a possible short-term correction of Bitcoin to $76K.
- Coinbase and other analysts foresee an extended rebound due to renewed accumulation.
Peter Brandt, a renowned trader, has projected a likely short-term correction of Bitcoin (BTC) to $76K. This statement comes despite the cryptocurrency rallying 6% last week and briefly reclaiming the $85K mark.
Bitcoin’s Possible ‘Corrective’ Phase
Brandt’s argument is based on BTC’s bearish rising wedge on the 4-hour chart. He believes that the pattern could drag BTC to the $76K level if validated. He stated, “The advance off the April lows looks more corrective than it does impulsive.”
However, not all analysts share Brandt’s bearish outlook. Some, including those at Coinbase, believe that BTC’s value is ‘fair’ and presents a ‘buying opportunity,’ citing renewed interest from long-term holders (LTH).
Long-Term Holders See Buying Opportunity
Coinbase analysts, in their weekly market report, noted, “While accumulation by LTH is not necessarily indicative of an imminent price jump, we do think it suggests that a growing segment of ‘fair value’ buyers are seeing current BTC price levels as a buying opportunity.”
It’s important to note that the LTH cohort has been key sellers since late December when BTC surged above $100K. Whether this shift in LTH sentiment will boost BTC’s recovery is yet to be seen.
Other analysts, such as Stockmoney Lizards, highlighted the similarity between the current price action and last year’s accumulation phase. They suggested that a decisive move above $85K could mark the next leg up.
Analyst Michael van de Poppe echoed a similar sentiment, noting that the bullish RSI divergence was a strengthening signal for BTC. He stated that BTC could surge higher if it holds above $80K.
There are three key levels to watch in the short term – $86K, $84K, and $82.7K. Coinglass’ liquidation heatmap on the 48-hour chart marked these levels as key liquidity pools that could act as price magnets.
