Veteran trader Peter Brandt says that Bitcoin (BTC) could be on the verge of ending the downward trend that started nearly a year ago.
Brandt tells his 641,400 Twitter followers the sharp rise in Bitcoin trading volumes as the flagship cryptocurrency falls below $30,000 could suggest the beginning of the end of the bearish cycle.
“This is the type of volume spike that can indicate puke-out capitulation and the beginning of the end of the one-year decline. Can the carnage continue? Anything is possible and that includes a local bottom. I’ve mentioned the $27,000 area as a possible low, and that could be.”
Bitcoin is trading at $28,284 at time of writing.
In reaction to the price collapse of Terra (LUNA), a blockchain protocol focusing on issuing algorithmic stablecoins, the veteran trader says that the distrust generated by Terras crash could negatively impact Bitcoin.
“This decline is just plain Lunatic. LUNA
I have spoken openly about my distrust of altcoins and that crypto is Bitcoin and Bitcoin is crypto.
The problem is that distrust in that which is distrustful can spill over into that which is trustworthy (Bitcoin).”
Terra is trading at $0.037 at time of writing, a drop of approximately 99.9% from the all-time high of $119 reached in early April.
Brandt also says that he views non-fungible tokens (NFTs) in the same vein as other overhyped and overvalued physical assets of the past.
“I personally equate much of the NFT market with Beanie Babies and Pet Rocks.”
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