03.06.202109:02 Forex Analysis & Reviews: Peter Brandt: Bitcoin may fall to $21,000 per coin, but a quick recovery should not be expected

Bitcoin has not just been trading sluggishly over the past few days, the most eloquent picture is now taking shape on the 4-hour timeframe (illustration below). The bitcoin quotes are between two trend lines and as they narrow, the volatility of the cryptocurrency also decreases. By and large, BTC is now moving sideways, which is also clearly seen in the illustration. Thus, we believe that today or tomorrow, Bitcoin will try to get out of this triangle, which may lead to a stronger movement than what we have seen in recent days. Thus, it remains only to find out which of the trend lines will overcome the "digital gold".

At the same time, the world-renowned trader Peter Brandt almost completely repeated our conclusions on bitcoin and its prospects. First, Brandt called for investing in bitcoin only the money that investors are willing to lose. Secondly, he named the worst-case scenario for Bitcoin, in which the cryptocurrency could fall to $21,000 per coin. Peter also said that during the last drop in Bitcoin, he reduced the number of his coins by 70%, but is still in long positions. Nevertheless, it seems that the trader himself is inclined to believe that Bitcoin will continue to fall. He asked all those hoping for a quick recovery in the bullish trend, when was the last time Bitcoin hit its high after falling 50%? Brandt also drew attention to the fact that whenever bitcoin began a deep correction, it subsequently amounted to at least 70% of its value. Plus, the fundamental background remains sharply negative for bitcoin low. Thus, not all investors are shouting at all angles that Bitcoin is about to start again to the level of $100,000. There are also those who soberly assess the situation. We have the opportunity to work out not only the growth of bitcoin, but also its fall. Therefore, when the corresponding signals appear, we recommend selling the cryptocurrency.

Technically, bitcoin on the 4-hour timeframe went into a kind of flat. The quotes are still between the two trend lines. Thus, in the near future, the "spring" may straighten and the market will move with renewed vigor in one direction. The only question is, which one? If there is a breakdown of the lower trend line, then the chances of a further fall will increase, at least to the level of $30,500. If the upper trendline is crossed, bitcoin will try to recover to the level of $43,852. These signals can be used to open corresponding positions.