Forty-year trading veteran Peter Brandt made the headlines earlier this month when he stated that a violation of the “parabolic phase” that started in December 2018 could ignite an 80 percent correction of the entire parabolic advance.
If current parabolic phase is violated, we could expect either an 80% correction of 7-month advance or much smaller correction w/ definition of new parabola w/ shallower slope. $BTC Note formation of possible 2-wk H&S or H&S failure pic.twitter.com/6IF1bHREAv
— Peter Brandt (@PeterLBrandt) July 7, 2019
As Bitcoin continues correcting and now is trading below the $10,000 support level, Brandt reaffirmed that the cryptocurrency market could be about to suffer a major plunge from the high of $310 billion in market capitalization to roughly $150 billion, which will mostly affect altcoins.
While the parabola in BTC was subject to different renderings, the parabola in the total market cap chart was loud and clear. Total cap should correct 80%. Most of the damage of decline will occur to altcoins. pic.twitter.com/DssCIL4H0R
— Peter Brandt (@PeterLBrandt) July 16, 2019
An 80 percent correction from Bitcoin’s latest parabolic advance from $3,130 to $13,800 could imply that this cryptocurrency will depreciate to nearly $5,000, which is somewhat more optimistic than Tone Vays’ idea of a move down to $2,800. Although it is too early to tell whether any of these bearish scenarios will be possible or not, this technical analysis will evaluate the different levels of support that could hold BTC from a further drop.
Bitcoin Technical Analysis
According to Josh Rager, a technical analyst, an 80 percent correction will be devastating to most crypto assets,