Peter Brandt warns chart gaps could bring BTC down
A well-known trader named Peter Brandt recently went to Twitter to highlight two significant gaps in bitcoin’s chart that still need to be filled. He told traders to short bitcoin, insinuating that the digital currency’s value would decline in the not-too-distant future.
A call against the bitcoin market
The gaps hypothesis in trading proposes that all gaps in the market ought to be filled at some point in the future, which is the foundation for this line of thinking. The latest surge above $28,000 for bitcoin has been driven by a wave of liquidations that followed the failure of SVB bank and the subsequent bank run.
As a result of the turbulence in the conventional financial sector, many investors have begun to look to cryptocurrencies as a haven in the hopes of shielding their assets from the market collapse that the failure of banks has caused.
Nonetheless, Brandt’s observation of the empty gaps hints that bitcoin, currently trading at the $28,000 level as earlier reported by crypto.news, could move downward.
The market may return to lower levels, which would decrease the bitcoin price if the gaps hypothesis is correct. Traders and investors must oversee the market and be aware of the possible ramifications of these gaps to avoid losing money.
What are chart gaps?
On a chart, gaps are the empty areas that develop when an item’s price dramatically moves up or down, but there is no trading activity between these price levels.
A substantial change in the attitude of the market or the dissemination of important news often brings them on.
According to the idea of gaps, the market will ultimately return to these empty regions and fill the gap, which will lead to a reversal in price at some point in the future.
It is essential to take a cautious approach to the market and consider the probability of a negative move, even though bitcoin has been a popular option among investors seeking shelter from market volatility.
Because of the inherently unstable character of cryptocurrencies, traders and investors must carry out exhaustive research and be ready to adapt quickly to unexpected shifts in the market.