Bitcoin price took a surprising tumble after some inexplicable kerfluffle at BitMEX and traders are now wondering if the current rally has been compromised.
Strong Correction Breaks Bitcoin’s Parabolic Advance
Yesterday’s massive liquidation at BitMEX has the entire crypto-world up in arms and concerns about broken parabolas, fat fingers, wonky algos, and outright manipulation are setting every chatroom and journal on fire.
Despite all the chaos, one veteran trader isn’t the least bit worried, in fact, in an indirect way he appears to have predicted that something like this would happen.
$2,200 correction should prove to be swing trade buy pic.twitter.com/6IBjxgmIs8
— Peter Brandt (@PeterLBrandt) May 17, 2019
Veteran commodities trader and Bitcoin muse Peter Brandt recently tweet shouted a response to a Twitter user’s question about the state Bitcoin’s most recent parabola and according to Brandt it would break down and “morph into a lower sloped parabolic advance”.
While speaking to BlockTV at Consensus 2019 Brandt also predicted that Bitcoin will run to $50,000 but also said:
I look at Bitcoin and I say there’s a 50% chance it goes to zero. It becomes worthless, that the whole narrative is a big scam. But there’s a 50% chance we could go parabolic again and if we go parabolic again, we could go up to $200,000 – $300,000.
History Doesn’t Repeat Itself but it Often Rhymes
Brandt’s previous suggestion that Bitcoin’s recent price action was nearly identical to the double bottom from 2015 is holding up well and his explanation that this bottom followed the sharp correction from its prior parabolic peak in late 2013 remains sufficient.
According to Brandt and a growing number of analysts,